South Korea’s Hyundai Heavy Industries (HHI) Group enjoyed a year-end bonanza that carried over into 2021, signing newbuilding contracts worth US$4.27Bn in 34 days
The remarkable run was revealed by HHI in stock exchange disclosures, netting newbuilding contracts for 31 ships from 3 December to 5 January, with orders for 13 LNG carriers, 10 container ships, six very large crude carriers (VLCCs) and two 40,000-m3 LPG carriers. Twenty-five of the newbuilds valued at US$3.5Bn were landed in a year-end rush, counting towards HHI’s 2020 annual budget.
The momentum carried over into 2021, with the South Korean shipbuilder announcing shipbuilding contracts for six container ships for Asian shipping companies. Under one contract, Hyundai Samho Heavy Industries Ltd (HSHI) will build two container ships under a contract worth KRW297Bn (US$273M), while HHI will build four container ships under an order valued at KRW594Bn (US$546M).
Two 300,000 VLCCs were ordered in mid-December by Hyundai Glovis from HSHI for US$179.2M, according to BRL Weekly Newbuilding. Commenting on the order, BRL said “This underlines continuing low pricing which is having the effect of inducing many orders. It is doubtful prices could go much lower and deliveries are keenly scheduled for January and March 2022. All plus points for potential customers. The duo will operate long-term COA’s for Hyundai Oilbank.”
As we reported, two LNG carriers ordered from HHI in mid-December were placed by Pan Ocean. Pan Ocean also signed a contract valued at KRW199Bn (US$183.7M) with Samsung Heavy Industries (SHI) for a single LNG contract on 5 January.
Other South Korean shipbuilders fared well as 2020 ended, with Daewoo Shipbuilding and Marine Engineering (DSME) securing a US$1Bn order to build six 23,500-TEU+, LNG-fuelled container ships for Hapag-Lloyd, which holds options to build six more.
There was speculation that the year-end order surge might have helped South Korea edge out China for the top spot in the global world shipbuilding rankings.
The accompanying table provides details on the spate of orders signed by HHI.
Riviera will provide free technical and operational webinars in 2021. Sign up to attend on our events page