HHI Reports Strong Recovery in New Orders

SOUTH KOREAN shipbuilding giant Hyundai Heavy Industry reported a considerable improvement in new contracts secured in the first quarter of 2017, with expectations that the industry has bottomed out.

News ID: 73504

Date: 20 April 2017 - 09:11

According to MANA, Combined shipbuilding and offshore orders at the group level stood at $1.5bn, representing a 175.1% growth compared to the same period of last year, according to the company’s interim report on business performance.

Of those, new orders in HHI’s shipbuilding sector reached $763m in the first three months of 2017, compared to just $234m during the year-ago period,

Orders at Hyundai Mipo Dockyard surged almost tenfold to $480m, while that of Hyundai Samho Heavy Industries increased 89.1% to $244m.

Contracts for offshore and engineering units, however, declined 65.8% to just $51m.

Orders inked between January and March include the two very large crude carriers each for DHT Holdings and Enesel, one Floating Storage Regasification Unit for Kolin Construction, one 180,000 cu m liquefied natural gas carrier for Knutsen OAS Shipping, according to Clarksons.

In a separate investor relations document, HHI said it expects newbuilding orders to recover, shipbuilding overcapacity to be reduced and fresh tonnage prices to rise.