Marine Link
Friday, October 28, 2016

Korea's Top 3 Shipbuilders' Shaky Performance

File Photo: Samsung Heavy Industries

The value of contracts signed by Korea's big-three shipbuilders— Hyundai Heavy Industries, Daewoo Shipbuilding and Marine Engineering, and Samsung Heavy Industries — fell far behind the amount they projected for this year, reports The Korea Herald. Meanwhile, Arirang reported that the third quarter earnings of Korea's top 3 are likely to be in the black. Samsung Heavy Industries did not sell a single vessel during the first eight months of this year. Its yearly outcome, however, may differ as the company is currently negotiating a deal worth as much as $2.7 billion.

Philippine Navy Orders 2 Frigates from Hyundai Heavy

Image of to-be-built 2,600ton Frigate for the Philippine Navy (Image: HHI)

Hyundai Heavy Industries (HHI) has signed a contract to build two 2,600 ton frigates with the Department of National Defense, Republic of the Philippines. The frigates, scheduled to be delivered from 2020, will be a smaller light combatant and successor to the Incheon class frigate now in active service for ROKN, and tailored to the requirements of the Philippine Navy with an optimized range of good marine standards under rules from Lloyd Register. The 107 meter frigates to be propelled with CODAD (Combined Diesel and Diesel) propulsion system with maximum speed of 25knots can cover a 4…

Hyundai Heavy Turns to Black in Q3

Pic: Hyundai Heavy Industries

South Korean shipyard Hyundai Heavy Industries emerged from the third quarter with a black bottom line, although with a smaller profit than in the previous quarter, thanks in part to reduced costs and improvement in its non-shipbuilding business. Revenue fell by nearly one fifth during the period. Net income came to 334 billion won (US$295 million) in the July-September period on a consolidation basis, a turnaround from a loss of 618 billion won a year earlier. Hyundai announced in a regulatory filing that its operating profit came at 321.8 billion won on sales of 8.8 trillion won…

Euronav Defers VLCC Resale Deliveries into 2017

Euronav NV said it has agreed with Hyundai Heavy Industries (HHI) shipyard in South Korea to defer the delivery of the two VLCC ex-yard resale vessels it recently purchased to the first quarter of 2017. The vessels, previously expected to be delivered between October and November 2016, will now be delivered in January 2017. Pursuant to these deferred deliveries, the amount of approximately $97 million that was previously expected to be paid to the shipyard during the fourth quarter of 2016 is now expected to be paid in the first quarter of 2017. “It is, in fact, hard to understand why anyone would think of taking delivery of a ship in the last two to three months of the year given the importance that the vintage year has on the value of any ship.

HHIG to Post Record Sales

Hyundai Heavy Industries Group (HHIG), which consists of Hyundai Heavy Industries, Hyundai Mipo Dockyard and Hyundai Samho Heavy Industries expects to surpass its yearly sales target up 24 percent from a year earlier. As of the end of October, HHIG secured $28.8 billion worth of contracts from shipbuilding to plant businesses _ $16.2 billion by Hyundai Heavy Industries, $5.8 billion by Hyundai Mipo Dockyard and $6.8 billion by Hyundai Samho. Hyundai Heavy Industries’ net profit in the third quarter rose 106 percent from a year ago to 434.7 billion won. Industry analysts say worries over excessive supply, the rapid growth of Chinese shipbuilders and soaring oil prices still remain as risk factors impeding the expansionary plans of South Korean shipbuilders…

Hyundai Heavy Industries to Build 'Connected Smart Ships'

Shipbuilder Hyundai Heavy Industries is collaborating with technology service provider Accenture to design a ‘connected smart ship’ that aims to enable ship owners to better manage their fleets and achieve potential operational savings through the application of digital technologies. Using a network of sensors that will be built into new vessels, ship owners will be able to capture a range of ship voyage information including location, weather and ocean current data, as well as on-board equipment and cargo status data. By applying real-time analytics to new and historical fleet data and using data visualization technology to present the insights…

Offshore Shipbuilding Demand Prompts HHI Design Expansion

Hyundai Heavy Industries plans to establish a new ship design subsidiary early next year by expanding its Mipo Engineering Co, reports Yonhap News Agency. Hyundai Heavy Industries plans to establish a new ship design subsidiary early next year by expanding its Mipo Engineering Co, reports Yonhap. Growing demands for high-end ships such as drill ships and offshore plants prodded Hyundai Heavy to set up the new company, the shipbuilder informed Yonhap. Mipo Engineering will be incorporated into Hyundai E&T, which will be financed by Hyundai Heavy Industries, Hyundai Mipo Dockyard Co. and Hyundai Samho Heavy Industries Co. Hyundai Heavy plans to increase the number of ship designers to 1,600 by 2018 from the current 350, and the number of employees in the ship inspection sector to about 400.

Hyundai Heavy Industries Says Profit Up

Hyundai Heavy Industries Co. last week posted a more-than-fivefold increase in second-quarter net profit amid higher ship prices and lower steel costs. Hyundai Heavy reported net profit of $200m in the three months ended June 30. Hyundai Heavy received $5.01 billion worth of new shipbuilding and offshore structure orders in the January-June period. Its backlog orders totaled 236 vessels valued at $19.8 billion at the end of June, which will occupy its dockyards for next three years, the Houston Chronicle reported. (Source: Houston Chronicle)

DSME Denounces McKinsey Report

Pic courtesy: VisitKorea

The report by Global consulting company McKinsey & Company that Daewoo Shipbuilding & Marine Engineering (DSME) is least likely to survive among the big three shipbuilding companies has brought about strong opposition from DSME. McKinsey Korea has issued its preliminary report on the state of South Korea's shipbuilding industry, and its conclusions are dire: McKinsey believes that Daewoo Shipbuilding and Marine Engineering may not survive past 2020, due to a forecast negative operating margin and a liquidity shortfall reaching as much as $3 billion.

Hyundai Heavy, Baoshan Sign MoU

Hyundai Heavy Industries Co., Ltd. disclosed that it had signed a Memorandum of Understanding with Baoshan Iron & Steel Co., Ltd. to import wide and heavy plates for shipbuilding. Hyundai Heavy Industries plans to import 180,000 tons of steel plates from Baosteel yearly. Both declined to disclose the price of the deal to keep trade secret. Hyundai Heavy Industries said that the price was lower than that offered by Japanese steelmarkers and a South Korean report said that South Korea would gradually enlarge imports of China- made steel plates for shipbuilding. South Korean shipbuilders mainly bought wide and heavy plates from Japan besides the local supply. But the two sides have had different opinions on pricing since the second half of 2005.

Hyundai Heavy Affiliate Aims to Sell Stake in Brokerage Unit

South Korean shipbuilder Hyundai Heavy Industries said on Wednesday that its affiliate aims to sell its brokerage unit Hi Investment & Securities by the end of this year.   The affiliate, Hyundai Mipo Dockyard, holds an 85 percent stake in Hi Investment & Securities.   In June, Hyundai Heavy Industries announced a plan to sell its non-core assets, as the shipbuilder is grappling with a global slump in trade and commodities, plus rising competition from China. (Reporting by Hyunjoo Jin; Editing by Gopakumar Warrier)

HHI Orders Refrigeration, Cold Stores for FPSO

Photo courtesy of ALMACO

Goliat, the first cylindrical floating production, storage and offloading (FPSO) vessel on the Norwegian Continental Shelf built for Eni Norge and partner Statoil at Hyundai Heavy Industries (HHI), will feature ALMACO’s cold stores and refrigeration machinery. Hyundai Heavy Industries awarded the contract to ALMACO Group in July of 2011, and ALMACO finalized the commissioning work at the end of 2014. ALMACO said its scope of supply includes the supply and installation of cold stores and refrigeration machinery, as well as commissioning and spare parts.

Korean Shipbuilders Place in Top 10 for June Orders

Korean shipbuilders occupied seven out of the top 10 positions in the world last month in terms of orders. Hyundai Heavy Industries was the world’s largest shipyard in terms of order backlog as of late June with 11.74 million compensated gross tons (CGT), British shipbuilding market researcher Clarkson reported. Samsung Heavy Industries came second with an order backlog of 8.27 million CGTs, followed by Daewoo Shipbuilding & Marine Engineering (DSME) with 7.41 million CGTs and Hyundai Mipo Dockyard Co., one of two Hyundai Heavy Industries subsidiaries, with 4.11 million CGTs. Created after a merger of two shipyards in Dalian, China’s Dalian Shipbuilding Industry Corp.

Korean Shipyard Names Five New Containerships

Container ships, sunrise: Photo courtesy of HHI

Hyundai Heavy Industries (HHI), which claims to be the world’s biggest shipbuilder says that it set a new daily naming ceremony record by naming 5 containerships (ordered from Enesel) on a single day. In a simultaneous naming ceremony attended by Mr. Andonis Lemos; Mr Filippos Lemos; Mr. Kim Oi-hyun, President & CEO of Hyundai Heavy Industries; and other 130 participants at HHI’s yard in Ulsan, South Korea, the sponsors including Mrs. Irini N. Lemos, mother of the Lemos brothers and four other ladies, named three 10,500TEU containerships and two 13,800TEU containerships for the Greek owner.

Ship Values Rise

As the world has been beset by a wave of bad financial news -- from the looming financial crisis and credit crunch to the rapidly escalating cost of industrial materials, particularly steel -- Clarkson via its weekly Clarkson Index delivered some good news for a change, as the index, which is a measure of prices for all types of vessels, rose for the first time in more than three months. According to a Bloomberg report, this has buoyed the stock prices for some of the world's largest shipbuilders, including Hyundai Heavy Industries and Daewoo Shipbuilding & Marine Engineering.  Hyundai Heavy Industries Co. and Daewoo Shipbuilding & Marine Engineering Co.,

Korean Shipyard Wins LNG Carrier Contracts

LNG Carrier: Photo credit Wiki CCL Wolfgang Meinhart

Hyundai Heavy Industries (HHI) & its affiliated shipyard obtain orders totalling US$1.05 billion to build five liquefied natural gas (LNG) carriers. One of the LNG carriers of 155,000-cubic-metre capacity and worth US$210 million is for Brunei Gas, reports the Oman Daily Observer. HHI's affiliated shipyard, Hyundai Samho Heavy Industries, also won a contract for four 174,000-cubic-metre LNG carriers valued at $840 million from Greece’s Maran Gas. The contract included an option exercisable by the owner for two additional same-class LNG carriers.

Hyundai, Samsung Clash in Drillship Market

According to a report from the Korean Herald, the competition in the market for drillships is heating up with Hyundai Heavy Industries Co. threatening Samsung Heavy Industries Co.’s dominance. Hyundai Heavy has turned its eyes to the market in recent years. The company’s first drillship was delivered late last year and Samsung Heavy has lost its place at the top of the drillship market to Hyundai Heavy.   Source: The Korean Herald  

Orders at Korean Shipbuilders to Break $30b

Korea's three major shipbuilders are expected to draw in orders worth $30b this year, Arirang News reported. Industry reports put orders for Hyundai Heavy Industries at $13b, Samsung Heavy Industries at $10-11b, and Daewoo Shipbuilding and Marine Engineering at $10b. Samsung Heavy Industries won the most number of orders as of March with four liquid natural gas tankers, one floating production storage, one offloading vessel, and nine oil tankers. Daewoo Shipbuilding and Hyundai Heavy Industries is also reportedly looking ahead to a stellar year and expected to secure their targets set for 2007 when foreign firms begin placing orders for various projects later on in the year. Source: Arirang News

Euro Crisis May Hit Korea's Shipbuilders

In particular, the nation’s shipbuilding companies’ exports to the European Union are equivalent to 19.7 percent of their total production, according to a report of the Hyundai Research Institute, says 'The Korean Herald'. Exports account for about 85 percent of the total sales for the shipbuilding sector. Hyundai Heavy Industries, the world’s largest shipbuilder, saw its shipbuilding orders remain unchanged at $1.5 billion (1.7 trillion won) between January and April, having plunged by 70 percent over the same period last year. In addition, major shipbuilders, including Hyundai Heavy Industries, are suffering from declining profitability as they strive to win production orders at lower bidding prices.

Hyundai Heavy Aiming For KSE Listing

South Korea's leading shipbuilding firm Hyundai Heavy Industries Co. reportedly aims to list its shares on the Korea Stock Exchange in several months.

Hyundai Heavy Plans IPO In August

Hyundai Heavy Industries Co. reportedly decided on an initial public offering in August to list its shares on the Korea Stock Exchange.

Hyundai Heavy Plans IPO In August

Hyundai Heavy Industries Co. reportedly decided on an initial public offering in August to list its shares on the Korea Stock Exchange.

Hyundai Heavy Plans IPO In August

Hyundai Heavy Industries Co. reportedly decided on an initial public offering in August to list its shares on the Korea Stock Exchange.

Maritime Reporter Magazine Cover Oct 2016 - Marine Design Annual

Maritime Reporter and Engineering News’ first edition was published in New York City in 1883 and became our flagship publication in 1939. It is the world’s largest audited circulation magazine serving the global maritime industry, delivering more insightful editorial and news to more industry decision makers than any other source.

Maritime Reporter E-News subscription

Maritime Reporter E-News is the subsea industry's largest circulation and most authoritative ENews Service, delivered to your Email three times per week

Subscribe for Maritime Reporter E-News