Samsung Heavy Industries Wins 2 Tril. Won Worth of Orders Over Past Week

Hi Investment & Securities Co. said on Aug. 26 that Samsung Heavy Industries Co. achieved more than 71 percent of its order target by winning 2 trillion won (US$1.65 billion) worth of orders over the past week.

Choi Gwang-sik, an analyst at the brokerage, said, “Samsung Heavy’s cumulative order receipts have surpassed US$5.50 billion (6.68 trillion won), reaching 71 percent of its order goal of US$7.80 billion (9.47 trillion won) for this year.” The company received orders worth US$3.80 billion (4.62 trillion won) from January to July and US$1.70 billion (2.06 trillion won) in August. It is also expected to win the Barossa FPSO project from Australia in the near future.

Foreign media outlets reported that Samsung Heavy Industries landed 751.30 billion won (US$618.61 million) worth of orders for 10 tankers on Aug. 19 and orders for six more vessels on Aug. 23. Accordingly, the company is expected to disclose new order receipts worth 1.08 trillion won to 1.15 trillion won (US$889.25 million to 948.54 million) shortly.

Experts say that the strengthening dollar will boost its profitability. Choi said, “In dollar terms, the prices of newly built ships are low, but the won-dollar exchange rate is a whopping 1,218.90 won now. So, the company’s profitability will improve sharply.”

He added, “Samsung Heavy Industries is also expected to additionally receive large-scale orders as the company is currently in talks with three shipping companies and three shipbuilding firms to win orders for the industry’s first LNG-powered very large crude carriers (VLCC).”