Hanwha Ocean Secures 'Record Price' for Two Ultra-Large Crude Carriers Worth 342 Billion Won

Including Option Contracts... Expecting Additional Orders
"Effective Selective Order Strategy Focused on Profitable Products"

Hanwha Ocean has secured orders for two ultra-large crude oil carriers (VLCCs) for the first time in three years.

Hanwha Ocean announced on the 23rd that it had received orders for two VLCCs from an Oceania-based shipowner for 342 billion KRW. This is the highest price in 16 years since the 2008 global financial crisis, and the company attributed this success to its selective order strategy focused on high-profit products.

These vessels will be built at the Geoje shipyard and are scheduled to be delivered to the shipowner with one vessel each in the first and second halves of 2026. The contract also includes options for additional orders, raising expectations for further orders in the future.

In particular, these ships minimize carbon emissions by applying various fuel reduction devices and optimized hull forms developed by Hanwha Ocean.

Ultra-large crude oil carrier built by Hanwha Ocean
[Photo by Hanwha Ocean]

The company expects orders for ultra-large crude oil carriers to continue for the time being. While only three VLCCs were ordered in 2022, the number surged to 18 last year.

On the other hand, the global order backlog for vessels under construction is only 23 ships. This is interpreted as a result of rising oil prices and freight rates coinciding with the replacement period for tankers. Because of this, the VLCC market is gradually recovering. Hanwha Ocean has built the largest number of VLCCs in operation worldwide, with 185 out of 925 vessels.

According to newbuilding price data recently compiled by Clarkson, a shipbuilding and shipping research institute, the price of ultra-large crude oil carriers has risen by more than 40% over the past three years since 2021. VLCCs, along with LNG carriers and ammonia carriers, are emerging as new high-profit vessel types. Hanwha Ocean has secured orders for a total of four vessels worth approximately 510 million USD this year, including two ultra-large crude oil carriers and two ultra-large ammonia carriers.

A company official said, "We are pursuing a selective order strategy focused on profitability based on our differentiated VLCC technology and construction experience accumulated over a long period, as well as the application of leading eco-friendly technologies. Through this, we will do our best to normalize management."

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