Less than Great Expectations
Major Korean shipbuilders attained their business goals earlier than expected last year and raised their order targets for 2014 on expectations that more orders would be placed in the marine energy equipment sector and the like. However, their predictions turned out to be wrong, and they seem unable to meet their larger goals this year. In particular, the offshore plant sector has become a nightmare.
Hyundai Heavy Industries won orders worth a total of US$13.3 billion between January and September this year. The amount is equivalent to just 53.2 percent of its goal for 2014.
The amount and percentage is US$6.5 billion and 45 percent each for Daewoo Shipbuilding & Marine Engineering. This company won no offshore plant construction contract at all during the period, though it earned US$4.08 billion by building such plants last year.
Samsung Heavy Industries’ goal for this year is US$15 billion. However, it has received orders worth only US$6.5 billion combined by the third quarter.
Industry experts are assuming that the companies will be able to achieve just 70 percent to 80 percent of their yearly business targets, when the number of business days left is allowed for, although some large-scale LNG carrier and offshore plant contracts are slated to be placed by shale gas developers.