Korean shipyards raise their sales targets

The Egina FPSO is being built by SHI under a $3 billion contract

JANUARY 1, 2018 — South Korean shipbuilders have sharply raised their order targets for 2018, reports the Yonhap news agency.

Yonhaps cites its sources as saying that Hyundai Heavy Industries Co. (HHI) is targeting $13.2 billion worth of new orders this year, up 76 percent on its 2017 target of $7.5 billion. Actual orders for HHI in 2017 were worth a total $10 billion.

Samsung Heavy Industries (SHI) aims to win $7.7 billion worth of new orders in  2018, up 18 percent from 2017’s $6.5 billion target. Actual orders in 2017 came in at $6.9 billion.

Daewoo Shipbuilding & Marine Engineering Co. (DSME) set its annual order target for 2018 at over $5 billion, reports Yonhap. In 2017, it won $2 billion in new orders.

Back in 2013, SHI won one of the largest newbuild contracts ever, securing a $3 billion order to build the Egina Floating Production, Offloading and Storage (FPSO) vessel for Nigeria. The FPSO, which is 330m x 61m x 34m, can hold 2.3 million bbl of oil, left for Nigeria from its Geoje shipyard on October 31, 2017. It is expected to arrive in Nigeria after a three-month journey from South Korea. A joint venture formed between SHI and a local Nigeria company called SHI-MCI has been fabricating the topsides for the FPSO since June 2015. The Egina FPSO is expected to be commissioned and delivered in the second half of 2018.