HD Korea Shipbuilding & Offshore Engineering (HD KSOE), the intermediate holding company for HD Hyundai Group’s shipbuilding, announced on Feb. 20 that it has signed a contract for the construction of two Very Large Ammonia Carriers (VLACs) with a regional African shipping company, with a total order value of approximately KRW 322.8 billion (about $242 million). The new VLACs will be built by HD Hyundai Heavy Industries and are expected to be delivered in February 2027.
Together with the latest order, HD KSOE has taken orders for 40 new ships worth about $4.77 billion this year, fulfilling 35.3% of its annual order target of $13.5 billion.
By vessel type, it includes 2 liquefied natural gas (LNG) carriers, 15 product tankers, 17 liquefied petroleum gas (LPG)/ammonia carriers, 2 oil tankers, 2 liquefied CO2 carriers, 1 very large ethane carrier (VLEC), and 1 offshore unit.
Earlier this month, HD KSOE announced that consolidated operating profit for 2023 was KRW 282.3 billion, compared to KRW -355.6 billion in the same period last year; operating income rose 23.1% year-on-year to KRW 21.292 trillion; and net profit was KRW 144.9 billion. Q4 2023 realized an operating profit of KRW 161.1 billion, up 37.6% year-on-year; operating income and net loss were KRW 5.89 trillion and KRW 8.86 billion, respectively.
Notably, this is the first time since 2020 that HD KSOE has turned a profit. In 2024, HD KSOE has set a relatively “conservative” annual order target.