Hyundai Heavy Leads Gain Shipyards on Offshore Demand (Update1)
By Kyunghee Park
May 16 (Bloomberg) -- Hyundai Heavy Industries Co., the world's largest shipbuilder, led advances among rivals in South Korea and Singapore on expectations fuel demand will increase the need for more offshore equipment.
Hyundai Heavy climbed 3.7 percent, the highest in more than three weeks, to close at 367,000 won in Seoul. Keppel Corp., the world's largest maker of shallow-water oil rigs, gained 2.6 percent to S$11.80 in Singapore.
Record crude prices and global economic growth are prompting oil companies to explore in deeper waters as reserves deplete in shallow regions, increasing the need for more rigs and floating production platforms.
``With oil at where it is, it makes more business sense,'' said Lee Jae Kyu, an analyst at Mirae Asset Securities Co. in Seoul. He has an ``overweight'' rating for the South Korean shipbuilding industry.
Brazil's state-controlled oil company Petroleo Brasileiro SA, also known as Petrobras, discovered what may be the world's third-largest oil field off the coast of Brazil, Haroldo Lima, director of Brazil's National Oil Agency, said on April 15.
Samsung Heavy Industries Co., the world's biggest maker of vessels used for drilling in deep water, climbed 3.9 percent to 41,550 won in Seoul. Daewoo Shipbuilding & Marine Engineering Co., the world's third-largest shipbuilder, gained 1.1 percent to 43,050 won.
To contact the reporter on this story: Kyunghee Park in Hong Kong at kpark3@bloomberg.net
Last Updated: May 16, 2008 05:32 EDT
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