Hyundai Merchant Marine Signs LoI for 20 Vessels
South Korea's Hyundai Merchant Marine (HMM) has selected country’s three major shipbuilder and signed letters of intent (LOIs) with them to build 20 container carriers by mid-2021, reported Yonhap. According to company sources, as quoted by Reuters, the South Korea’s largest shipper believes that through the acquisition of the most technologically advanced mega container ships, it can strengthen cost competitiveness and react rapidly to the international environmental regulations.
Daewoo Shipbuilding & Marine Engineering Delivers New High-tech LNG Carrier
South Korean shipbuilding giant Daewoo Shipbuilding & Marine Engineering (DSME) has delivered a liquefied natural gas (LNG) carrier with a full re-liquefaction system (FRS) to an unidentified owner, said a report in Yonhap.Most of the LNG ship orders the company has received so far this year include the FRS system. "It is a major achievement for the world’s second-largest shipbuilder by orders as the company now has the technology to build LNG ships with either the partial re-liquefaction system (PRS) or the FRS system…
Daewoo Shipbuilding Seeking Stake Sale in Non-Core Assets
South Korea's Daewoo Shipbuilding & Marine Engineering Co (DSME) is accelerating its move to sell all non-core assets o beef up its financial status amid concerns over a sharp fall in new orders, Yonhap reported quoting industry sources. DSME has recently signed a memorandum of understanding (MoU) to sell its building in downtown Seoul, a deal valued at US$30 million, the report said. The shipbuilder also put one of its affiliates up for sale, whose price tag is set at some 18 billion won, with the two cases of asset sales expected to be completed by April.
Daewoo Shipbuilding to Get Fresh $2.6 Bln Bailout
South Korean state banks are preparing a fresh $2.6 billion bailout for floundering Daewoo Shipbuilding & Marine Engineering Co Ltd, which has built up huge losses from offshore projects and risks missing debt repayments. Daewoo, Hyundai Heavy Industries and Samsung Heavy Industries are South Korea's top shipbuilders - a massive economic force and a source of national pride. But they slipped into the red in 2015 amid a commodities downturn and bleak trade volumes, prompting cost cuts and asset sales. Of the three, Daewoo's situation is the most difficult.
Daewoo to Deliver Two More LNG Tankers in 2017
South Korea's Daewoo Shipbuilding expects to deliver two more ice-class tankers to lift liquefied natural gas (LNG) from Russia's Yamal LNG project this year, a company spokesman said on Monday. Daewoo Shipbuilding & Marine Engineering (DSME), which has the world's largest volume of existing orders among shipyards, has got an order to build a total of 15 ice-class tankers for the Yamal LNG project. The first tanker, named after Christophe de Margerie, the former chief executive of French oil company Total who died in an aircraft crash at a Moscow airport in 2014, made a test docking at the Sabetta port in Yamal last week. A spokesman for Daewoo Shipbuilding said on Monday that the remaining 14 LNG tankers for Yamal are all due to be delivered by 2020…
Daewoo Shipbuilding Bondholders Okay Bailout Plan
Debt-to-equity swap plan is condition of $2.6 bln bailout. South Korea's Daewoo Shipbuilding & Marine Engineering Co Ltd on Monday won near unanimous approval for a debt-to-equity swap plan in the first three of five bondholder meetings, as the world's largest shipbuilder battles to stay afloat. The votes were held hours after Daewoo's biggest bondholder, the National Pension Service (NPS), said it had agreed to the proposal. That move made it likely other bondholders would follow suit, creditor bank officials said, allowing the shipbuilder to meet conditions of a $2.6 billion bank bailout.
Daewoo Shipbuilding unlocks $2.6 bln Bailout
Bondholders at final meetings agree to debt-to-equity swap; shipbuilder needs about $400 mln in operating funds by April-end. South Korea's Daewoo Shipbuilding & Marine Engineering Co Ltd has won near unanimous agreement from bondholders to swap their debt for equity, meeting a condition that unlocks a $2.6 billion bank bailout for the world's biggest shipbuilder. Daewoo won approval from over 96 percent of bondholders at two meetings on Tuesday and three on Monday, with attendance exceeding 78 percent.
Daewoo Shipbuilding books first Quarterly Profit in 4 years
South Korea's Daewoo Shipbuilding & Marine Engineering Co Ltd posted its first quarterly profit in more than four years on Thursday, as on-time delivery of higher-margin vessels as well as cost-cutting measures helped the bottom line. The world's largest shipbuilder in terms of orderbook reported an operating profit of 292 billion won ($257.57 million) for the January-March quarter, compared with an operating loss of 38 billion won a year earlier. Revenue came in at 2.8 trillion won, compared with 3.5 trillion won a year earlier.
Korean Shipyards Bag $1.5bln Newbuild Order from MSC
Samsung Heavy Industries (SHI) and Daewoo Shipbuilding & Marine Engineering (DSME) - two major shipyards in South Korea - are poised to sign a deal worth $1.5 billion to build container ships for Mediterranean Shipping Company (MSC), according to the Financial Times. The report said that this deal is the latest signal that the South Korea’s troubled shipbuilding industry is showing signs of recovery, after large losses posted by both companies in recent years because of a lack of orders. MSC is working on an order for up to 11 container vessels, the report said. The deals will help local shipyards struggling to win more shipbuilding deals.
Daewoo Shipbuilding: $1.4 bln order Cancelled
Cancelled order part of Statoil's Bressay project. South Korea's Daewoo Shipbuilding & Marine Engineering Co Ltd on Friday said a 1.58 trillion won ($1.41 billion) order placed in 2013 for a fixed oil production platform has been cancelled. The shipbuilder said in a regulatory filing that the cancellation would have no effect on its balance sheet as no costs had been incurred. A company spokesman also said the order had not been factored into any earnings forecasts. Daewoo Shipbuilding said a European company placed the order and had cancelled due to deterioration in its global operating environment. The cancelled order was an option in a contract signed with Norway's Statoil ASA as part of the Bressay oil development project on Britain's continental shelf…
DSME to Build Two VLCCs for BW Group
South Korean shipbuilder Daewoo Shipbuilding & Marine Engineering (DSME) has received a 200 billion won (US$179.2 million) order to build two oil tankers for Singapore-based oil and gas transporter BW Group. According to Yonhap, DSME will provide the oil and gas transporter two 318,000-ton Very Large Crude Carriers (VLCCs) by 2018. The BW Group has ordered a total of 63 ships from Daewoo Shipbuilding and has received 53 so far. This is the 10th order DSME has won this year, and the total amount has crossed US$1 billion.
Daewoo Shipbuilding Fights Liquidity Crunch
South Korean shipbuilder Daewoo Shipbuilding & Marine Engineering (DSME) is going all out to secure cash amid growing concerns over a possible liquidity crisis and a widening probe into accounting fraud, reports Korea Herald. DSME, currently under a creditor-led corporate rehab, plans to submit later this week a detailed plan to secure funds to its creditors. According to local reports, the plan may include an earlier than scheduled spinoff and initial public offering of its special-purpose ship business. DSME is also accelerating cost reductions, including job cuts.
Daewoo Shipbuilding Selling Shares to Raise Funds
South Korea's Daewoo Shipbuilding & Marine Engineering Co Ltd said on Thursday it is planning to sell shares to raise funds by the end of this year, with details to be discussed with its creditor banks. Daewoo Shipbuilding, the world's largest shipyard in terms of orderbook tonnage for July, according to Clarksons Research, reported earlier this week net losses of 1.19 trillion won ($1.08 billion) for the first half of 2016. Reporting by Joyce Lee
Daewoo Forms Joint Venture with Nigerian National Petroleum
Daewoo Shipbuilding & Marine Engineering Co Ltd will enter the shipping business by forming a joint venture company with Nigerian National Petroleum Co, Daewoo Shipbuilding said. The joint venture, tentatively named Nigeria Daewoo Shipping Ltd, will have a capital base of 10 mln usd, with Daewoo Shipbuilding owning 51 pct and Nigerian National Petroleum the rest, Daewoo Shipbuilding said. Daewoo Shipbuilding will be in charge of the management and Nigerian National Petroleum will supply crude oil for shipping. Source: Forbes
Former Chief of Daewoo Shipbuilding Gets 6 Years in Jail
Former Daewoo Shipbuilding & Marine Engineering (DSME) boss Nam Sang-tae sentenced to six years in prison by Korean court for embezzlement and bribery, Yonhap reported. The report said that the Seoul Central District Court handed down the guilty verdict to Nam Sang-tae, 67, convicting him of accounting fraud, embezzlement, breach of duty and bribery. The court ordered him to forfeit 880 million won (US$806,000). Prosecutors have demanded an eight-year prison term. The court said…
Maersk Names Fourth Jack-up at DSME
Maersk Drilling’s fourth XL Enhanced ultra-harsh environment jack-up was named on 14 October at a ceremony held at the Daewoo Shipbuilding and Marine Engineering (DSME) shipyard in South Korea. "Maersk Drilling’s fourth XL Enhanced ultra-harsh environment jackup was named on 14 October at a ceremony held at the Daewoo Shipbuilding and Marine Engineering (DSME) shipyard in South Korea," says a company press release. At the edge of the bustling Daewoo Shipbuilding and Marine Engineering (DSME) shipyard in South Korea…
DSME Creditors Mull Equity Swap
Creditors of Daewoo Shipbuilding & Marine Engineering (DSME) are set to announce a debt-for-equity swap and other measures, worth 3 trillion won (US$2.62 billion), reports Yonhap. Korea Development Bank (KDB), a main creditor of DSME, said that the bank will accept debt-to-equity swaps worth at least 1.6 trillion won ($1.4 billion) to keep the company operating with sufficient financial liquidity. KDB along with the other creditor Export-Import Bank of Korea (EXIM Bank) would provide a combined 4.2 trillion won worth of financial aid to Daewoo Shipbuilding…
Korea's Labor Unions Asked to Cooperate In Daewoo Revamp
Creditors of embattled Daewoo Shipbuilding & Marine Engineering Co. have demanded that the shipbuilder's labor union accept the company's large-scale restructuring scheme in return for helping the shipyard stay afloat, says Yonhap. The creditors, led by the state-run Korea Development Bank, have asked Daewoo Shipbuilding's labor union to accept the company's restructuring plan, which includes job cuts, in exchange for the funding. It is set to announce a debt-for-equity swap worth 3.2 trillion won (US$2.83 billion) for Daewoo Shipbuilding this week…
S.Korea State Banks to Inject $2.4 Bln into Daewoo Shipbuilding
Struggling Daewoo Shipbuilding & Marine Engineering Co Ltd's will receive an injection of 2.8 trillion won ($2.4 billion) from two state-run creditor banks to save it from being delisted, one of the lenders said. Daewoo's main creditor, Korea Development Bank (KDB), said in a statement it will cancel about 60 million of its Daewoo shares, and reduce the remaining stake by a ratio of ten shares to one to cut the ship builder's debt-to-asset ratio. It will then inject 1.8 trillion won ($1.6 billion) in Daewoo in a debt-for-equity swap. The Export-Import Bank of Korea will buy 1 trillion won in Daewoo-issued perpetual bonds to shore up Daewoo's finances, KDB added. ($1 = 1,149.3900 won) (Reporting by Joyce Lee; Editing by Edwina Gibbs)
MOL Accepts "Great Ship of the Year" Award
Maritime Reporter & Engineering New’s Great Ship of 2017 Award was presented to Mr. Yoshikazu Kawagoe, Chief Technical Officer, Mitsui O.S.K. Lines in MOL’s headquarters in Tokyo. A full report on the world’s 3rd largest shipowner will publish soon in the pages of MR. Mitsui O.S.K. Lines, Ltd. The World’s Largest Floating Storage and Regasification Unit (FSRU Max). Japanese shipowner Mitsui O.S.K. Lines, Ltd. (MOL) in middle of October, took delivery of MOL FSRU Challenger the…
DSME to Spin off IT Biz Unit
Daewoo Shipbuilding & Marine Engineering Co. (DSME) plans to spin off its IT business unit next year in an effort to streamline its business structure, reports Yonhap. The unit, provisionally named DSME Information System, will be started on Jan. 1, the company said. The company will manage DSME’s IT system and related tasks with some 150 employees, it said. The planned spinoff is part of the shipyard's restructuring schemes which include asset sales and a reduction in workforce.
Daewoo Shipbuilding Wins $590 million Greek Deal
Daewoo Shipbuilding & Marine Engineering Co. (DSME) has bagged a combined 700 billion won (US$590 million) in potential orders from Maran Tankers Management, a unit of Angelicoussis Shipping Group, reported Yonhap. Under the agreement with the Greece's largest shipper the troubled South Korean shipbuilder will provide a liquefied natural gas-floating storage and regasification (LNG-FSRU) ship. The contract also includes an option to build two more LNG tankers if Angelicoussis Shipping Group satisfies with the first deal to build the LNG-FSRU.
Daewoo to Develop Iranian Shipyard
South Korean shipbuilder Daewoo Shipbuilding and Marine Engineering Co., Ltd. (DSME) and the Industrial Development and Renovation Organization of Iran (IDRO) have signed an outline agreement to cooperate on developing the shipbuilding Industry in Iran. Under the deal with the Industrial Development and Renovation Organisation of Iran, Daewoo Shipbuilding will work on constructing a shipyard and related facilities in Iran, according to Yonhap News Agency. The parties plan to establish…