Daewoo Shipbuilding targets 18% jump in offshore orders on oil-price rise
Daewoo Shipbuilding & Marine Engineering Co., the world’s third-largest shipyard, expects orders for drilling vessels and offshore platforms to increase 18 percent this year, helped by higher fuel prices.
Contracts for drill ships, semi-submersibles and offshore platforms may rise to $6 billion this year from $5.1 billion in 2010, Nam Sang Tae, Daewoo Shipbuilding’s chief executive officer, said today.
The Seoul-based company expects to win more work in Brazil and Southeast Asia as oil producers including Total SA and Petroleo Brasileiro SA boost spending on rigs and offshore structures to meet demand for the fuel. Crude prices have risen 13 percent in the past year, and global demand may reach 88.02 million barrels a day this year and 89.65 million in 2012, according to the U.S. Energy Department.
“Oil prices are expected to rise this year, and this will create demand for offshore structures,” Nam said in a briefing at Daewoo’s shipyard in Geoje, South Korea. “There should be an increase in demand from regions such as Brazil and Southeast Asia.”
Daewoo Shipbuilding is the world’s biggest maker of drill ships used for oil exploration in deep waters after Samsung Heavy Industries Co. The shipyard today delivered to Total a floating oil production and storage plant, the largest of its type in operation, the vessel builder said.
Petrobras, a Brazilian state-owned company, plans to invest $224 billion through 2014 to develop reserves along the country’s coast to boost production.
Daewoo Shipbuilding aims to win $11 billion in orders for vessels and offshore projects this year, an increase from $10.3 billion it received in 2010. Sales may climb to more than 12 trillion won this year, Nam said, without providing a comparative figure.
Daewoo Shipbuilding gained 2.2 percent to close at 37,950 won in Seoul trading. The stock has advanced 91 percent in the past year, compared with a 23 percent rise in South Korea’s Kospi index.
Contracts for drill ships, semi-submersibles and offshore platforms may rise to $6 billion this year from $5.1 billion in 2010, Nam Sang Tae, Daewoo Shipbuilding’s chief executive officer, said today.
The Seoul-based company expects to win more work in Brazil and Southeast Asia as oil producers including Total SA and Petroleo Brasileiro SA boost spending on rigs and offshore structures to meet demand for the fuel. Crude prices have risen 13 percent in the past year, and global demand may reach 88.02 million barrels a day this year and 89.65 million in 2012, according to the U.S. Energy Department.
“Oil prices are expected to rise this year, and this will create demand for offshore structures,” Nam said in a briefing at Daewoo’s shipyard in Geoje, South Korea. “There should be an increase in demand from regions such as Brazil and Southeast Asia.”
Daewoo Shipbuilding is the world’s biggest maker of drill ships used for oil exploration in deep waters after Samsung Heavy Industries Co. The shipyard today delivered to Total a floating oil production and storage plant, the largest of its type in operation, the vessel builder said.
Petrobras, a Brazilian state-owned company, plans to invest $224 billion through 2014 to develop reserves along the country’s coast to boost production.
Daewoo Shipbuilding aims to win $11 billion in orders for vessels and offshore projects this year, an increase from $10.3 billion it received in 2010. Sales may climb to more than 12 trillion won this year, Nam said, without providing a comparative figure.
Daewoo Shipbuilding gained 2.2 percent to close at 37,950 won in Seoul trading. The stock has advanced 91 percent in the past year, compared with a 23 percent rise in South Korea’s Kospi index.