Korea Shipbuilders May See Mild 2014 Recovery: Analysts

The nation’s major shipbuilders are expected to undergo a mild recovery on the back of a pickup in demand for commercial vessels and liquefied natural gas (LNG) carriers, reports 'The Korea Times' as informed by experts and analysts.

The analysts forecasted that the nation’s leading builders such as Hyundai Heavy Industries (HHI), Samsung Heavy and Daewoo Shipbuilding and Marine Engineering (DSME) are well positioned to win more premium vessels ahead of their Chinese and Japanese rivals next year. Particularly given that the shipbuilders are currently engaged in developing their profits by lowering their reliance on conventional and unprofitable vessels.

HHI, Samsung and DSME forecast that they will win $24.3 billion, $13 billion and $13.1 billion worth of orders, respectively, this year.

The Korea Times news item cites Woori Investment & Securities analyst Yoo Jae-hoon as stating in a recent research report that ship orders by HHI, Samsung Heavy and DSME are expected to increase by more than 13 percent next year from this year as demand for commercial vessels capitalizing on LNG carriers will increase.

Source: The Korea Times