Samsung Heavy Industries (010140.KS) has won orders for six large vessels worth a combined 1.65 trillion won ($1.2 billion), surpassing its commercial ship order total for all of last year.
The shipbuilder said on the 14th that it signed contracts with an Oceania-based shipowner for four large liquefied natural gas carriers worth $1 billion (about 1.37 trillion won) and two crude oil tankers worth $200 million (about 274.6 billion won). The six vessels are valued at $1.2 billion (about 1.65 trillion won) in total.
The four LNG carriers ordered have a capacity of 200,000 cubic meters, larger than the 174,000-cubic-meter standard model. The company said the bigger cargo tanks allow fewer voyages to move the same volume, improving operating efficiency per unit of cargo carried.
Samsung Heavy's orders have been rising as the LNG carrier market recovers. Global newbuilding orders in the first half of this year rose 66% from a year earlier in compensated gross tonnage terms, according to British shipping and shipbuilding research firm Clarksons Research. LNG carrier orders alone totaled 59 vessels, or 9.7 million cubic meters, in the first half — close to the full-year total for last year. Supply chain diversification aimed at securing stable energy supplies and geopolitical tensions in the Middle East are seen as driving the increase in orders.
Commercial ship orders at Samsung Heavy have reached $7.3 billion (about 9.82 trillion won) this year, exceeding last year's annual commercial ship total of $7.1 billion (about 9.55 trillion won). The figure is 28% above this year's commercial ship order target of $5.7 billion (about 7.67 trillion won).
By vessel type, the company has won orders for 18 LNG carriers, including one floating storage and regasification unit, along with 14 crude oil tankers, four container ships, four gas carriers and two ethane carriers.
In its offshore division, Samsung Heavy secured contracts for two floating liquefied natural gas production units worth a combined $4.4 billion (about 5.92 trillion won). That amounts to 54% of the division's $8.2 billion annual order target (about 11.03 trillion won).
Combined orders across the shipbuilding and offshore divisions total 44 vessels and units worth $11.7 billion (about 15.73 trillion won), or 84% of the company's annual target of $13.9 billion (about 18.70 trillion won).
A Samsung Heavy official said the latest large LNG carrier order reflects the company's response to shipowners' demand for long-distance transport. "We will continue to be selective in taking orders, focusing on profitability while meeting customer requirements and convenience," the official said.
