South Korea's major shipbuilders, STX and Hyundai, said on Tuesday they have won a combined $1.7 billion orders to build mostly LNG carriers and oil tankers, defying global financial turmoil that has roiled the shipbuilding sector, Reuters reports. Benchmark global shipping rates .BADI have fallen nearly 70 percent since October, hit by global economic downturn and falling freight rates, but the LNG market has been a rare bright spot, buoyed by growing demand for cleaner energy.
STX Offshore & Shipbuilding Co (067250.KS) said on Tuesday it won orders worth 682 billion won ($608) million to build six tankers and two LNG carriers from Russian and Norwegian companies.
Russian state-controlled shipping giant Sovcomflot placed two orders for LNG carriers and it has an option to order additional two ships, STX said.
John Fredriksen Group, run by the secretive Norwegian billionaire, placed orders for six 50,000 deadweight tonne (DWT) oil tankers, each worth $35 million, and has an option for an additional four ships, STX said in a statement.
The order comes after Fredriksen told the Financial Times on Monday that he plans to invest hundreds of millions of dollars in new vessels, defying market conditions that have forced many rivals into or close to bankruptcy. [ID:nL5E8DC3W7]
Fredriksen created Frontline 2012 after restructuring Frontline Ltd (FRO.OL), the largest independent global oil tanker operator, in January and the new firm took over ships and $1.12 billion in bank debt, as the industry struggles with weak demand and overcapacity.
Norway's Gola LNG (GLNG.O), of which Fredriksen is serving as a chairman, also placed two LNG carrier orders with Hyundai Samho Heavy Industries, its listed affiliate, Hyundai Heavy Industries (009540.KS), said on Tuesday.
Hyundai Heavy, the world's biggest shipbuilder, secured separate orders to build one LNG storage unit for Norway's Hoegh LNG Holdings (HLNGH.OL) and two LNG carriers from a European ship operator. The five orders for it and Hyundai Samho are worth $1.1 billion in total, Hyundai said. [ID:S6E8D300F]
Shares in STX rose as much as 5.3 percent before trading up 1.2 percent at 0040 GMT in a steady market .KS11 on Tuesday.
The latest deals by STX add to its order book of one tanker order from a Greek ship operator in January and six mid-sized dry-bulk carriers early this year.
Shares in Hyundai Heavy rose 0.9 percent.
STX Offshore & Shipbuilding Co (067250.KS) said on Tuesday it won orders worth 682 billion won ($608) million to build six tankers and two LNG carriers from Russian and Norwegian companies.
Russian state-controlled shipping giant Sovcomflot placed two orders for LNG carriers and it has an option to order additional two ships, STX said.
John Fredriksen Group, run by the secretive Norwegian billionaire, placed orders for six 50,000 deadweight tonne (DWT) oil tankers, each worth $35 million, and has an option for an additional four ships, STX said in a statement.
The order comes after Fredriksen told the Financial Times on Monday that he plans to invest hundreds of millions of dollars in new vessels, defying market conditions that have forced many rivals into or close to bankruptcy. [ID:nL5E8DC3W7]
Fredriksen created Frontline 2012 after restructuring Frontline Ltd (FRO.OL), the largest independent global oil tanker operator, in January and the new firm took over ships and $1.12 billion in bank debt, as the industry struggles with weak demand and overcapacity.
Norway's Gola LNG (GLNG.O), of which Fredriksen is serving as a chairman, also placed two LNG carrier orders with Hyundai Samho Heavy Industries, its listed affiliate, Hyundai Heavy Industries (009540.KS), said on Tuesday.
Hyundai Heavy, the world's biggest shipbuilder, secured separate orders to build one LNG storage unit for Norway's Hoegh LNG Holdings (HLNGH.OL) and two LNG carriers from a European ship operator. The five orders for it and Hyundai Samho are worth $1.1 billion in total, Hyundai said. [ID:S6E8D300F]
Shares in STX rose as much as 5.3 percent before trading up 1.2 percent at 0040 GMT in a steady market .KS11 on Tuesday.
The latest deals by STX add to its order book of one tanker order from a Greek ship operator in January and six mid-sized dry-bulk carriers early this year.
Shares in Hyundai Heavy rose 0.9 percent.