Offshore plants, the main cause of the shipbuilding industry’s prolonged recession, are making a comeback. Demand for offshore plants is changing from oil to eco-friendly energy such as offshore wind power and liquefied natural gas (LNG). It is expected to become a new growth driver for Korean shipb
SK earthon, a subsidiary of SK innovation dedicated to resource development, announced on Nov. 22 that it has started the shipment of crude oil produced from the Lufeng 12-3 oil field in Block 17/03 located in the northeastern South China Sea. The production of this crude oil, which commenced in Sep
The author is an analyst of NH Investment & Securities. He can be reached at ys.jung@nhqv.com -- Ed.Despite a decrease in natural gas prices, LNG development continues to accelerate. FLNG market growth is set to continue on the back of new usage trends. Helped by increased shipbuilding volume, SHI s
The author is an analyst of KB Securities. He can be reached at newday@kbfg.com. -- Ed.Korea Shipbuilding & Offshore Engineering: Massive net losses on unfavorable FX effects— KSOE posted 4Q22 K-IFRS consolidated revenue of KRW4.94tn (+10.9% YoY) and OP of KRW117.1bn (TTB YoY; 2.4% OPM). — Revenue m
The author is an analyst of KB Securities. He can be reached at newday@kbfg.com. -- Ed.Maintain BUY, target price of KRW5,700 We maintain 12m TP of KRW5,700 (12m fwd BVPS x 1.34x target P/B) on SHI. Our revisions to earnings forecast, adjustment to 12m fwd period, yield changes to 1y MSB (RFR)/30y K
Samsung Heavy Industries has won a 2-trillion-won offshore plant order for the first time in three years.The company announced on Dec. 22 that it has won an order for an offshore production facility from a client in Asia. It kept details about the deal under wraps at the request of the shipowner. Ye
The author is an analyst of KB Securities. He can be reached at newday@kbfg.com. -- Ed. Maintain HOLD; lower target price to KRW5,700 We lower our 12m TP for SHI by 5.0% to KRW5,700 given lowered earnings estimates, change in total equity (due to change in debt), change in 12m fwd period and changes
Daewoo Shipbuilding & Marine Engineering (DSME) said on Aug. 5 that it has filed an arbitration request with the International Chamber of Commerce (ICC) regarding a claim for damages from INPEX, Japan's largest oil and gas exploration and production company.The Japanese company demanded damages
Russia’s Ukraine Invasion is showing again how much Europe is dependent on Russian energy. Under the circumstances, German Chancellor Olaf Scholz announced on Feb. 27 that Germany would build two LNG terminals in order to reduce its dependence on fossil fuel supply from Russia.A lot of European stat
The author is an analyst of KB Securities. He can be reached at newday@kbfg.com. -- Ed. 4Q21 earnings miss expectations by a wide margin— Samsung Heavy Industries posted 4Q21 K-IFRS consolidated revenue of KRW1.85tn (+10.9% YoY) and operating loss of KRW257.1bn (loss narrows YoY; -13.9% OPM). — Reve
The author is an analyst of KB Securities. He can be reached at newday@kbfg.com. -- Ed. Raise target price to KRW5,500; Maintain HOLD We raise our 12m TP for Samsung Heavy Industries (SHI) by 3.8% from KRW5,300 to KRW5,500 as we reflect a decrease in shareholders’ equity on a likely 4Q21 earnings sh
The author is an analyst of KB Securities. He can be reached at newday@kbfg.com. -- Ed. Resume coverage with HOLD, target price of KRW5,300 We resume coverage of SHI with a HOLD rating and TP of KRW5,300 (12m fwd BVPS x 1.16x target P/B); our coverage was suspended when KB Securities became lead und
South Korea is dominating the global floating liquefied natural gas (FLNG) facility market. A FLNG facility is a floating production storage and offloading (FPSO) unit that can purify, liquefy, and store natural gas extracted from the sea.The Korean Ministry of Trade, Industry and Energy said on Nov
The Barossa-Caldita gas field project of SK E&S is causing controversy. Millions of tons of carbon dioxide a year is likely to be emitted from the gas field in Australia in 2025 and later, SK E&S is planning to deal with it by carbon capture and storage (CCS), and the technique is being doubted by m
Korean shipbuilders' order book for offshore plant projects are expanding after a long order drought.Korea Shipbuilding & Offshore Engineering (KSOE) has recently signed a contract with a U.S.-based crude oil developer to build one floating production system (FPS) for 659.2 billion won.KSOE land
Korea Shipbuilding & Offshore Engineering announced on July 14 that it has signed 911.2 billion won contracts with Bermudian and European shipping companies to supply four very large LNG carriers.Each of the ships is likely to be 299 m in length, 46 m in width and 26 m in height. Hyundai Heavy Indus
Korean shipbuilders are stepping up their efforts to win orders for offshore plants whose demand is on the recovery amid rising oil prices.Daewoo Shipbuilding & Marine Engineering (DSME) is expected to sign a contract to build a floating production storage and offloading (FPSO) unit (P-79) with Braz
Korea Shipbuilding & Offshore Engineering (KSOE) announced on May 11 that it has signed a 2.5-trillion-won contract to build one floating production storage and offloading (FPSO) unit for Petrobras, Brazil. The Korean shipbuilder will carry out the project together with Keppel Shipyard of Singapore.
Korean shipbuilders are in the final stage of negotiations on a US$4.6 billion offshore plant construction project.Brazil's state-run oil company Petrobras are reportedly having last-minute negotiations on the price of two floating production storage and offloading (FPSO) units with two Korean s
Korean shipbuilders are expected to suffer another setback in bidding for offshore plant projects.Daewoo Shipbuilding and Marine Engineering and Samsung Heavy Industries are participating in a tender arranged by Norway's state-run oil company Equinor to select the design of a floating production