On February 26, HD Korea Shipbuilding & Offshore Engineering (KSOE), a shipbuilding intermediate holding company of HD Hyundai, announced that it has signed a contract for the construction of four 174,000 m3 liquefied natural gas (LNG) carriers with an Oceania-area shipping company. The total value of the order is KRW 1.4356 trillion (approximately US$1.08 billion), with a unit cost of KRW 358.9 billion (approximately US$270 million), which is the highest to date for a 174,000 m3 class LNG carrier.
According to Clarkson’s latest data, the current maximum market price for a 174,000 m3 LNG carrier is US$265 million, compared to which the above order is about US$5 million (RMB 35.98 million) higher per unit.
Including the latest order, HD KSOE has taken orders for 46 new ships worth about $5.98 billion (about 7.9653 trillion won) this year, realizing 44.3% of its annual order target of $13.5 billion.
By ship type, it includes 6 liquefied natural gas (LNG) carriers, 15 product tankers, 19 liquefied petroleum gas (LPG)/ammonia carriers, 2 oil tankers, 2 liquefied carbon dioxide carriers, 1 very large ethane carrier (VLEC), and 1 offshore unit.
So far this year, all six LNG carriers of HD KSOE have been constructed by Hyundai Samho Heavy Industries. Data shows that HD KSOE, as a shipbuilding company with strong competitiveness in the LNG newbuilding market, has received orders for 21, 25, 45 and 39 LNG carriers in 2020, 2021, 2022 and 2023, respectively.
In 2024, Hyundai Samho Heavy Industries’ annual order intake target is US$3.2 billion, which is 51.8% less than its 2023 annual order intake of US$6.33 billion. According to incomplete statistics, Hyundai Samho Heavy Industries has received new ship orders worth $1.292 billion so far this year, realizing about 40% of its annual order intake target of $3.2 billion.
