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Non-Tech : Shipbuilders and shipyards -- Ignore unavailable to you. Want to Upgrade?

To: Lynn who wrote (49)	5/30/2008 11:13:50 AM
From: Lynn	Respond to of 61

Korean Shipbuilding Industries- Bull Driver No. 4- Offshore Structures - Limited Choice for Mankind 27 May 2008 - 12 pages ? Deep into the water — Depletion of oil reserves in land and shallow waters followed by an increasing deep water opportunity is common knowledge. Recent hike of oil prices and the finding of new oil reserves in Brazil are accelerating the strong demand for offshore structures, especially rigs. ? 53% global M/S share by Korean yards since 2000 — Asian yards dominate deep water rig market with an 89% M/S, led by Korean yards (53% global M/S since 2000). 2008 YTD, market share of Korean yards is 83%. Most yards in US and Europe disappeared amid low oil prices in 1980s and 1990s. ? Preference shifting to drill ship — Preferred types of deep water rig are moving fast to drill ships from semi-submersible, with up to 85% YTD market share by drill ship. Also, Korean yards have more than 90% market share in drill ship, benefiting from their outstanding shipbuilding skills. ? Still higher profitability in commercial vessels — Despite rising demand and an outstanding market position in rigs, Korean yards are not rushing to land rig orders as they see a higher profit opportunity in commercial vessels. With further hikes of rig prices, more rig orders will be signed by Korean yards. ? Another positive driver — Korean yards can be more selective in new orders, which can accelerate the move of new building prices going forward. Further, we expect new rig orders, followed by FPSO orders, will boost top line growth for the yards. Hyundai Heavy and Mipo remain our top picks.