Samsung Heavy Industries Wins Order for 5 LNG Carriers Worth 1.5 Trillion KRW, Exceeding Target

Cumulative Orders of $9.2 Billion This Year
Exceeding Targets Following Last Year

LNG carrier built by Samsung Heavy Industries. Photo by Samsung Heavy Industries

[Asia Economy Reporter Choi Seoyoon] Samsung Heavy Industries has exceeded its order targets for two consecutive years through its competitive edge in high value-added and eco-friendly ship technologies.

On the 23rd, Samsung Heavy Industries announced that it secured an order for five LNG carriers from an Oceania-based shipping company, totaling KRW 1.4568 trillion.

With this contract, Samsung Heavy Industries raised its cumulative order amount for this year to USD 9.2 billion, surpassing its target of USD 8.8 billion.

Thus, it has exceeded its order targets for two consecutive years following last year. Last year’s order performance was USD 12.2 billion, achieving 134% of the target (USD 9.1 billion).

This year’s achievement in order targets was led by LNG carriers, which are representative high value-added and eco-friendly vessels.

Samsung Heavy Industries has secured orders for 35 LNG carriers this year alone, including this contract, by leveraging its proprietary technologies such as LNG fuel propulsion systems, reliquefaction systems, and energy-saving devices (ESD), as well as smart ship technologies.

This is a record high for a single year, surpassing last year’s 22 vessels. It also accounts for more than two-thirds of the 45 vessels Samsung Heavy Industries has ordered this year.

Meanwhile, market demand for LNG carriers is expected to continue for the foreseeable future due to the projected increase in LNG cargo volume.

According to Clarkson Research, a UK ship market analysis firm, LNG cargo volume is forecasted to rise from the initial 580 million tons to 630 million tons by 2030, and energy company Shell also projects LNG cargo volume to reach around 700 million tons by 2040.

A Samsung Heavy Industries official stated, "The consecutive large-scale orders are leading to increased sales after 2023, resulting in reduced fixed costs, improved profitability due to ship price increases, and enhancing the possibility of a performance turnaround."

This content was produced with the assistance of AI translation services.