Samsung Heavy Industries announced on Jan. 13 that the company was awarded a total of $7.3 billion in contracts for 2024, achieving 75 percent of its annual target of $9.7 billion.
In 2024, Samsung Heavy Industries received orders for 36 new vessels for about $7.3 billion. By ship type, the order includes 22 LNG carriers, 2 Very Large Ammonia Carriers (VLAC), 1 shuttle tanker, 4 medium-sized tankers, 4 container ships and 3 Very Large Ethane Carriers (VLEC). Among them, the number of environmentally friendly fuel (LNG and ammonia) vessels is 31, accounting for 86% of the total orders.
Samsung Heavy Industries’ failure to meet its order target for 2024 was due to the postponement to 2025 of a liquefied natural gas Floating Liquefied Nature Gas Unit (FLNG) for the Coral Sul project in Mozambique, which was originally scheduled to be signed during 2024. The order is valued at $2.5 billion.
Samsung Heavy Industries previously delivered its first FLNG for Mozambique, the Coral Sul FLNG 1, valued at about $2.54 billion, which has a capacity of 3.4 million tons per year and comes into operation in 2022.
Samsung Heavy Industries is about to receive an order for the “Coral Sul FLNG 2”, the successor to the “Coral Sul FLNG 1”, the basic design of which is the same as that of the 1st vessel.
Samsung Heavy Industries previously said that the Coral Sul FLNG 2 project has progressed to the production design stage. Samsung Heavy Industries had expected to receive the FLNG order in 2024, thus achieving its annual order target, but the project has been delayed due to political unrest and security issues in Mozambique.
In response, a Samsung Heavy Industries official said, “Although we did not achieve our order target, we have laid a stable profit foundation, which is meaningful.” He also added, “We expect to sign a contract as soon as the local situation is resolved.”
Mozambique is currently experiencing riots resulting from the presidential election, which has killed hundreds of people. If the political risks in the country are prolonged and business cannot be resumed, the large FLNG order may be further delayed.