Hyundai Heavy Wins $2.4 Billion Orders for 22 Tankers (Update1)
By Kyunghee Park
June 5 (Bloomberg) -- Hyundai Heavy Industries Co., the world's largest shipbuilder, said it received orders for 22 oil tankers valued at $2.4 billion from Europe this week as global demand increases for fuel.
The shipbuilder won contracts for six Very Large Crude Carriers, or VLCCs, 14 160,000-ton tankers and two 114,000 ships during the Poseidonia 2008 exhibition in Athens this week, Park Zoon Soo, a spokesman at Hyundai Heavy, said today, confirming a Maeil Business News report. Some of the orders had been announced by the company on June 3. No buyers were identified.
Yards in South Korea, the world's largest shipbuilding nation, are expanding capacity and using new methods to build vessels, such as building on land, as order backlogs stretch into 2012. Expanding global trade and demand for fuel to support economic growth are increasing the need for more vessels.
Hyundai Heavy received $8.34 billion in orders for ships and offshore structure in the first four months, more than tripling from $2.47 billion it won a year earlier. Its backlog for these businesses reached $38.1 billion.
Daewoo Shipbuilding & Marine Engineering Co., the world's third-largest shipbuilder, said yesterday it received $2.5 billion in orders over the past two weeks, including the $310 million for two oil tankers the newspaper reported today.
Hyundai Heavy dropped 0.5 percent to close at 384,000 won in Seoul. The stock has fallen 13 percent this year, compared with a 3.4 percent decline in South Korea's Kospi index.
To contact the reporter on this story: Kyunghee Park in Hong Kong at kpark3@bloomberg.net
Last Updated: June 5, 2008 03:36 EDT
bloomberg.com
Announcement from June 3rd referenced above:
Hyundai Heavy Gets 852 Billion Won Oil-Tanker Order (Update2)
By Kyunghee Park
June 3 (Bloomberg) -- Hyundai Heavy Industries Co., the world's largest shipbuilder, said it received an 852 billion won ($837 million) order from Europe to build nine oil tankers to meet fuel-transportation demand.
The Suezmax vessels, the second-largest of their type, will be delivered by March 30, 2012, Ulsan, South Korea-based Hyundai Heavy said in a regulatory filing today, without identifying the buyer.
Yards in South Korea, the world's largest shipbuilding nation, are expanding capacity and using new methods to build vessels as order backlogs stretch into 2012. They won almost half of the record $191.3 billion orders placed last year.
The price of a Suezmax oil tanker was $94.5 million at the end of April, 5 percent more than the $90 million rate at the end of 2007, according to London-based Clarkson Plc, the world's largest shipbroker.
Hyundai Heavy received $3.63 billion of orders for vessels and offshore structures in the first four months of this year, 15 percent more than a year earlier. That increased its backlog to $38.1 billion.
The shipbuilder is expanding capacity as it builds two of the world's largest docks and extends the length of existing ones in South Korea to meet demand. The new facilities are expected to start operations later this year.
Hyundai Heavy gained 0.8 percent to close at 386,000 won in Seoul. The stock has dropped 13 percent this year, compared with a 4.1 percent decline in South Korea's Kospi index.
To contact the reporter on this story: Kyunghee Park in Hong Kong at kpark3@bloomberg.net
Last Updated: June 3, 2008 03:26 EDT
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