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Saturday, August 18, 2018

Yonhap News

Samsung Heavy Industries Bags Two Special-Purpose Ships Order

Image: Samsung Heavy Industries

South Korea’s shipbuilder Samsung Heavy Industries (SHI) has received a contract to construct two special-purpose ships for an unnamed European company. According Yonhap, the deal has a value of around KRW 266.1 billion (USD 240 million). The report said that the special-purpose units are scheduled for delivery to the European owner by the end of January 2021. SHI declined to identify its client and the nature of the special-purpose ships. Last month, SHI won contract for building four shuttle tankers of total 152…

Hyundai Merchant Marine Signs LoI for 20 Vessels

Photo: Hyundai Merchant Marine Co

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.

Samsung Heavy Industries Post Quarterly Loss

Image: Samsung Heavy Industries (SHI)

Seoul-listed South Korean shipbuilder Samsung Heavy Industries (SHI) sunk into the red in the second quarter, on increased costs and one-off losses.SHI said in a regulatory filing that it posted a net loss of 142.7 billion won ($126 million) in the second quarter, compared with a net profit of 22.7 billion won a year earlier.The world's third-biggest shipbuilder by sales  blamed increased fixed costs and losses stemming from a delay in the delivery of a drill ship to Ocean Rig.Operating losses reached 100.5 billion won in the second quarter…

South Korea Tops Global Shipbuilding Industry in July

Image: Samsung Heavy Industries

South Korea maintained its number one ranking in the global shipbuilding market in July. The South Korean yards were responsible for almost half of all new orders placed in July 2018.According to Clarkson Research, Korea received orders in July totaling 970,000 compensated gross tonnage or CGT, a measure of work needed to build a vessel. That accounts for about fifty percent of the month's global shipbuilding orders.Yonhap reported that it is a sign of the industry's possible…

Government Okays USD 1.2 bln for Korea Ocean Business Corporation

File Photo: Hanjin

The government of South Korea decided to invest 1.35 trillion won (USD 1.2 billion) in Korea Ocean Business Corporation (KOBC). The compnay was created in order to help its shipping industry stand on its feet, especially after the bankruptcy of Hanjin Shipping.Yonhap reported quoting the finance ministry that Cabinet approved a plan to contribute 12.7-percent stakes in each of the country's four port authorities to the KOBC.Earlier this month, the corporation was officially launched in Busan…

Korea Ocean Business Corporation to Support 10 Shipping Companies

Photo taken during the inauguration of Korea Ocean Business Corporation (KOBC):  Provided by the Ministry of Oceans and Fisheries

The state-run Korea Ocean Business Corporation (KOBC) said it will offer support to 10 small and medium shipping lines as part of its effort to revive the country's maritime transportation sector.According to a report in Yonhap, KOBC selected the shipping lines as its primary negotiation partner with so-called sale and lease back (S&LB) assistance to be provided. KOBC aims to provide different services to rebuild shipping industry, including management of trade, support for replacement…

KOGAS Invests $8.84bn in LNG, Hydrogen Projects

File Photo: © alexyz3d / Adobe Stock

South Korean state-owned Korea Gas Corporation (KOGAS) will invest 10 trillion won (US$8.84 billion) by 2025 to expand its natural gas capacity and infrastructure for hydrogen vehicles and other clean energy sources, reports Yonhap.Kogas, which has a monopoly on domestic natural gas sales,  unveiled a long-term business plan on the 35th anniversary of its foundation as it expects to play a greater role under the government’s energy transformation policy. The world’s second-largest…

Daewoo Shipbuilding & Marine Engineering Delivers New High-tech LNG Carrier

Image: Daewoo Shipbuilding & Marine Engineering

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…

Samsung Heavy's Profit Down 82%

Photo: Samsung Heavy Industries

South Korean shipbuilder Samsung Heavy Industries (SHI) said that net profit for the third quarter of 2017 was down 81.8% year on year to KRW23.4 billion (USD20.44 million), mainly due to deliveries of low-priced vessels and a decrease in orders. According to Yonhap, the operating income  in the July-September period  reached 23.6 billion won, sharply down from an operating income of 84.1 billion won a year earlier. The shipyard's sales dropped 37 percent on-year to 1.75 trillion won over the cited period.

DSME Posts Profit for Q3

DSME’s first LNG-FPSO is on display in Okpo Bay. Photo: Daewoo Shipbuilding and Marine Engineering

South Korean yard giant Daewoo Shipbuilding and Marine Engineering (DSME) ended the third quarter of this year with a profit of KRW 45.7 billion (USD 41 million), compared to a net loss of KRW 284 billion posted a year earlier, Yonhap said. The troubled shipbuilder is significantly better off than last year after a rescue package from the South Korean government in the spring. DSME, which has battled a highly publicised liquidity crunch for the past two years,  posted profit for the third straight quarter from July through September…

Former Chief of Daewoo Shipbuilding Gets 6 Years in Jail

File Photo: Province of Nova Scotia

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…

South Korea Jails Former Hanjin Shipping Chairwoman

File Photo: Hanjin Shipping

The former chairwoman Choi Eun-young (55) of the now-defunct Hanjin Shipping was jailed 18 months for insider trading, reports Yonhap. According to the report the Seoul Central District Court found Choi  guilty of selling off her family-stake in the shipping company days before it declared a court-led debt restructuring plan. She was also fined with USD 1.09 million. The court said, although her charges are grave enough to deserve a heavy punishment, it considered that the stake…

CJ Logistics to Merge with Affiliate

Photo: CJ Logistics

CJ Logistics Corp. (CJL), South Korea’s largest parcel delivery service company under food and entertainment conglomerate CJ Group, will merge with the group’s construction arm, Yonhap said. The merger ratio will be one CJL share for every 0.54 CJ Engineering & Construction (CJEC) share, the logistics company said in a regulatory filing. CJL said in a regulatory filing on Tuesday that it will grant total 529,398 shares worth 80.3 billion won ($73.9 million) to CJ Corp. that owns a 99.9 percent stake in CJ E&C in exchange for a merger with the construction affiliate.

N. Korea Oil Embargo: S.Korea Seizes Panama-Flag Ship

© Igor Groshev/Adobe Stock

South Korean authorities have seized a Panama-flagged vessel suspected of transferring oil products to North Korea in violation of international sanctions, a customs official said on Sunday. The seizure was the second to be revealed by South Korea within a few days, as the United Nations steps up efforts to squeeze essential oil supplies to the reclusive North following its nuclear or ballistic missile tests. The ship, KOTI, was seized at Pyeongtaek-Dangjin port, the official told Reuters, without elaborating, due to the sensitivity of the issue.

South Korean Shipyards Aim More Orders

Phto: Samsung Heavy Industries

South Korean shipyards have sharply raised their order targets for next year on expectations that the shipbuilding sector will improve, Yonhap reported. The country's three major shipyards - Samsung Heavy Industries (SHI), Daewoo Shipbuilding & Marine Engineering (DSME),  and Hyundai Heavy Industries (HHI) - are looking at improving business conditions  on the back of a recovery in the global economy and stable oil prices. The report quoted industry sources saying that HHI is targeting US$13.2 billion worth of new orders next year, up 76 percent from this year's $7.5 billion.

Hyundai Heavy Sets 2018 Sales Target $7.5 billion

Photo: Hyundai Heavy Industries

South Korea's leading shipbuilder Hyundai Heavy Industries (HHI) aims to achieve 7.98 trillion won ($7.5 billion) in sales this year as its president warned of an unprecedented crisis due to declining order backlogs, reports Yonhap. Hyundai Heavy has not won any offshore plant orders for the past two years. The company's 2018 sales target represents a 60 percent decline from a decade ago. The shipyard said it is expected to post an estimated 10.03 trillion won in sales for 2017. The sales target is based on a parent base.

Hyundai Heavy Bags Canadian Facility Order

Photo: Hyundai Heavy Industries

South Korean shipbuilding giant Hyundai Heavy Industries (HHI) has won a design contract worth about $500 million for a liquefaction unit to be used for Steelhead LNG’s Kwispaa LNG export project in Canada’s British Columbia, reported Yonhap. Hyundai Heavy will conduct a front-end engineering design (FEED) for the hull of the At-Shore LNG (ASLNG) and build the LNG liquefaction facility for Steelhead LNG Corp., the company said in a statement. The ASLNG facility, scheduled to begin operations in 2024 on the coast of Vancouver…

Hyundai Samho Heavy Bags USD 200mln Order for LNG Carrier

Photo: Hyundai Heavy Industries

South Korean shipbuilder Hyundai Samho Heavy Industries (HSHI) has won a $ 200 million contract for the construction of a 174,000-cubic-meter LNG vessel for NYK Line, said a report in Yonhap. HSHI  is set to deliver a carrier that can hold 174,000 cubic meters of LNG to Japanese shipping company by 2020. The report said that it marked the first time that Hyundai Samho Heavy Industries has won an order from a Japanese company in 13 years. This year, Hyundai Samho Heavy Industries, an affiliate of Hyundai Heavy Industries (HHI), won orders to build seven vessels.

Hyundai Heavy Bags LPG Storage Tank Deal in Nigeria

Image: Hyundai Heavy Industries

Hyundai Heavy said it plans to start to build the tanks in May and is set to deliver the tanks to Nigeria's Dangote Oil Refining Company, Africa's largest refinery, beginning in April 2019. The 15 cylindrical tanks - each being eight meters in diameter and 95 meters in length - can hold 75,000 cubic meters of LPG, according to Hyundai Heavy. The 15 gas cylinders w ill be installed at Dangote Oil Reining’s refining and petrochemical plant near Lagos in southwestern Nigeria. The Korean company manufactures and sells ships…

DSME Wins $368 Mln Order

South Korean shipbuilder Daewoo Shipbuilding & Marine Engineering Co Ltd (DSME) has won a 394 billion won ($368 million) order for two liquefied natural gas (LNG) carrier vessels from an unnamed firm, Yonhap reported. The shipbuilder is expected to deliver two 170,000 cubic meter capacity LNG carriers to an owner in the Oceania region by September 2020, according to Yonhap.

Korea Lines orders two VLCCs at Hyundai Heavy

Photo: Hyundai Heavy Industries (HHI)

South Korean shipping firm Korea Line Corporation (KLC) has placed an order for two new very large crude carriers(VLCC) at country's biggest yard, Hyundai Heavy Industries (HHI), and the company will explore further collaborations with the country's shipbuilders. According to Yonhap news agency, the new VLCCs are expected to have been delivered by the  2020. The total amount of the agreement will amount at 185.6 billion won (US$173 million). The carriers, which can hold 300,000 tons of crude oil each…

STX Shipbuilding Stages Strike

Photos: STX O&S

The trade union workers of South Korea's STX Offshore & Shipbuilding Co. said Sunday they will stage a strike starting this week to protest the company's self-rescue plan, reports Yonhap. According to Korean media reports, the union would organize the strike action this week to express its disagreement with the company's planned restructuring program as it does not guarantee workers’ jobs. Starting today (Monday) 8:00 a.m., the union said 700 workers will walk out and called on the company to scrap the planned layoff of workers.

South Korea Eximbank Pledges Huge Loans to Shipping

Image: Export-Import Bank of Korea

As part of the government's large-scale rescue plan for shipping sector, the Export-Import Bank of Korea  (Korea Eximbank) sets a figure for loans and guarantees to the country's shipping sector. According to Yonhap, Korea Eximbank will funnel more than 800 billion won ($749.3 million) in shipping finance as a part of the state-sponsored program to revive the shipping industry following the collapse of Korea’s flag sea carrier Hanjin Shipping. The five-year plan for rehabilitating the maritime sector involves the building of more than 200 ships…

Maritime Reporter Magazine Cover Aug 2018 - The Shipyard Edition

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