The Big 3 Shipbuilders Achieve 116% of Annual Target with LNG Carrier Orders... Consecutive Success for 2 Years

Korea Shipbuilding & Offshore Engineering 188 Vessels This Year
LNG Carriers Top the World for 3rd Year
Daewoo Shipbuilding 38 LNG Carriers
Largest Orders Since Establishment
Samsung Heavy 35 LNG Carriers
Eco-Friendly, High-Efficiency Technology Effective

[Asia Economy Reporter Choi Seoyoon] The domestic shipbuilding industry's 'Big 3' have secured a large number of liquefied natural gas (LNG) carriers, easily surpassing their order targets early this year, following last year's strong performance.

According to the shipbuilding industry on the 25th, as of the 23rd of this year, the total order volume of the three major shipbuilders?Korea Shipbuilding & Offshore Engineering, Daewoo Shipbuilding & Marine Engineering, and Samsung Heavy Industries?reached $41.89 billion, exceeding the annual order target of $35.14 billion. The achievement rate stands at 116%.

Korea Shipbuilding & Offshore Engineering surpassed its annual order target within six months this year. It secured orders for a total of 188 vessels worth $22.29 billion, achieving 127.8% of its annual target of $17.44 billion. With this, all three companies have exceeded their order targets for two consecutive years.

So far, Korea Shipbuilding & Offshore Engineering has secured orders by vessel type as follows: 42 LNG carriers, 94 container ships, 24 PC vessels, 2 tankers, 4 bulk carriers, 1 LNG-FSRU, 9 LPG carriers, 4 PCTCs, 2 LNG DF RORO vessels, and 6 special vessels. It has ranked first globally in LNG carrier orders for three consecutive years.

Daewoo Shipbuilding & Marine Engineering achieved an order target fulfillment rate of 117%, the highest among the Big 3. It secured orders worth $10.4 billion, surpassing its target of $8.9 billion this year. Among the total 46 vessels/equipment ordered, 38 were LNG carriers, marking the largest order volume since its establishment.

Samsung Heavy Industries secured 5 LNG carriers worth 1.4568 trillion KRW from an Oceania-based shipping company yesterday. As a result, the company has secured orders worth $9.2 billion this year, surpassing $8.8 billion. The order target achievement rate is 105%.

It has secured 35 LNG carriers this year alone. This is also Samsung Heavy Industries' highest annual order record and accounts for more than 30% of the 45 vessels ordered this year. Samsung Heavy Industries explained that its high-efficiency eco-friendly technologies, such as the LNG fuel propulsion system developed independently, re-liquefaction system, and energy-saving device (ESD), as well as smart ship technology, played a key role.

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

The achievement of order targets by the major domestic shipbuilders is attributed to the increased demand for high value-added and eco-friendly vessels such as LNG carriers, driven by the global tightening of environmental regulations aimed at reducing carbon emissions. According to data from Clarkson Research, a UK-based shipbuilding and shipping market analysis firm, the price of LNG carriers was $248 million as of the end of last month. This is an increase of $4 million in one month and is only $2 million less than the record high in 2008 ($250 million).

The demand for LNG carriers is expected to continue for the foreseeable future. Clarkson Research has raised its forecast for LNG cargo volume in 2030 from 580 million tons to 630 million tons. Energy company Shell also projects LNG cargo volume to reach 700 million tons by 2040.

An industry official said, "While the improvement in the market has increased order volumes, there is a trend of securing many high-value vessels with high prices such as high value-added ships. The demand for eco-friendly energy continues to grow, and accordingly, the demand for LNG carriers will steadily increase."

Meanwhile, Korea Shipbuilding & Offshore Engineering, which was the only company to return to profitability in the third quarter this year, is expected to maintain this trend in the fourth quarter. The market expects Daewoo Shipbuilding & Marine Engineering and Samsung Heavy Industries to achieve profitability in the first and second quarters of next year, respectively.

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