Hyundai Heavy’s hurt continues

 

Both figures were far worse than analysts had predicted. 

On a quarter-on-quarter basis, sales declined 8.7%, while operating loss and net loss widened by 507.4 billion won and 209 billion won respectively, due to delays in offshore projects and lackluster sales by HHI’s construction equipment business. 

HHI said the rise in operating loss was attributable to early recognition of losses from contract cancellation of a semi-submersible rig; a loss provision for adverse changes in the offshore business environment such as the oil price decline; and an increase in the restructuring cost from divestiture of underperforming subsidiaries. 

A source said, “The shipbuilding business was hit by cancellation of a semi-submersible rig as oil prices nosedived to $40 a barrel. The offshore business set up a reserve for possible losses that may be incurred from belated change orders, increased manhours or delays in delivery caused by design changes.” 

HHI also booked the cost of liquidating unprofitable overseas subsidiaries, which started in 2014, as 3Q15 losses. 

A source in HHI said, “With a heavy focus on profitable businesses, HHI has taken bold steps to eliminate ailing subsidiaries since September 2014, as keeping them would only inflate the losses. The restructuring process is nearing its end, and part of the cost has been recognized as losses this quarter.” Meanwhile, HHI sees 4Q15 as a critical juncture for earnings turnaround. A source in HHI said, “4Q15 can be the starting point of earnings improvement: the shipbuilding business is recovering, with the phase-out of low-price orders and profit turnaround of commercial vessels. The offshore business has also booked all perceivable losses. Also, other businesses such as electro electric systems and engine and machinery have continued to cut costs.

“Even though the company has failed to turn a profit in 3Q15, it will spare no effort to normalize its operations, with a focus on profitable businesses, reshuffle for more responsible management of each business division, cost competitiveness enhancement, disposal of stock holdings and elimination of poor-performing subsidiaries to set the stage for a turnaround.” 

Time will tell.

Hyundai Heavy’s shares were down 2.3% at the end of trading in Seoul today

Fednav takes delivery of first BWTS equipped Laker

The ship, the 34,500 dwt ocean going laker Federal Biscay, is fitted with a ballast water treatment system (BWTS) — a first for ships transiting the Great Lakes, says Fednav, the largest international operator in the Great Lakes/Saint Lawrence Seaway System.

Fednav announced in April that it would equip all 12 ships in its Oshima shipyard newbuild program with BallastAce ballast water treatment systems (BWTS) (see earlier story).

Developed by JFE Engineering Corporation in Japan, the BallastAce system will be effective in both fresh and salt water. BallastAce operates through a combination of filtration and sodium hypochlorite (bleach) injection into the ship’s ballast system.

“This is a pivotal step in protecting the Great Lakes against invasive species and preserving biodiversity in the region,” said Paul Pathy, president and co-CEO of Fednav Limited. “Fednav is proud to be the first shipping company to deploy such systems, and we are pleased that the Federal Biscay is serving as a test ship for this technology.”

Fednav will start using BallastAce in the Great Lakes at the opening of the St. Lawrence Seaway in 2016.

With the assistance of Fednav, the BallastAce system (which is already USCG AMS approved) will continue the necessary testing for full U.S .Coast Guard type approval for fresh, brackish, and salt water at the GSI facility in Superior, WI, and at MERC in Baltimore, MD. During the first six months of 2016, the system installed on the Federal Biscay will be be used for the shipboard testing element of the type approval requirements.

Fednav expects that the IMO Ballast Water Management Convention, to which Canada is a signatory, will most likely enter into force in 2016, the year the U.S. Coast Guard and EPA require the installation of systems on ships trading in US waters.

LNG fuel tanks installed in first Crowley ConRo

Another important milestone was marked last week, with the installation of three LNG fuel tanks in the first ship.

The double-walled, stainless steel tanks – which are 110 feet in length and 20.6 feet in diameter – weigh 225 metric tons and will hold more than enough LNG fuel for two round-trip voyages between the vessel’s future ports of call, Jacksonville, FL, and San Juan, Puerto Rico.

“While we are all excitedly watching these ships take shape, we are particularly proud of the role we, as a company, are playing to bring the most modern, technologically advanced and environmentally friendly ConRo ships in the world to the Jones Act market of Puerto Rico,” said Tom Crowley, company chairman and CEO. “There are no other ships of their kind being built anywhere else in the world today, and they are being constructed right here at home – in the United States of America. Having that shipbuilding capability here is essential to our national defense and an important reason we as a country need the Jones Act to be maintained and strengthened.”

Crowley’s two Jones Act ConRo ships, which will be named El Coquí (ko-kee) and Taíno (tahy-noh), are are scheduled for delivery second and fourth quarter 2017 respectively.

“It’s very impressive to see these new state-of-the-art Commitment Class ships take shape,” said John Hourihan, senior vice president and general manager, Puerto Rico services. “Seeing those LNG tanks being placed into El Coquí really resonates with me because we are setting a new standard for environmentally responsible shipping.”

The Commitment Class ships have been designed to maximize the carriage of 53-foot, 102-inch-wide containers, which offer the most cubic cargo capacity in the trade.

The ships will be 219.5 meters long, 32.3 meters wide , have a deep draft of 10 meters, and an approximate deadweight capacity of 26,500 metric tonnes. Cargo capacity will be approximately 2,400 TEUs (20-foot-equivalent-units), with additional space for nearly 400 vehicles in an enclosed Ro/Ro garage.

Each ship will be powered by an MAN B&W 8S70ME-GI8.2 main engine and three MAN 9L28/32DF auxiliary engines, all fueled by LNG .

The ship design is provided by Wartsila Ship Design in conjunction with Crowley subsidiary Jensen Maritime.

ceowleyLNG vert

Ingalls authenticates keel of Paul Ignatius (DDG 117)

The Aegis guided missile destroyer, Paul Ignatius (DDG 117). DDG 117 is the 31st ship in the Arleigh Burke (DDG 51) class of destroyers Ingalls is building for the U.S. Navy.

“The keel authentication is an important milestone in a ship’s life and it’s really a foundation upon which the ship is made,” said Ingalls Shipbuilding President Brian Cuccias. “Paul Ignatius epitomizes the leadership and agility that has propelled our nation forward – I couldn’t think of a better namesake for DDG 117. Over the coming years as we build this great ship, our shipbuilders know what we do is important. We are building great ships to defend our nation, to protect the brave men and women who will serve on this ship and come back safely home to their families.”

Ingalls welder Reginald Whisenhunt welded the initials of two authenticators — the ship’s namesake Paul Ignatius and 26-year shipbuilder Bill Jones, an Ingalls hull superintendent —onto a steel plate signifying the keel of DDG 117 to be “truly and fairly laid.”

The plate will remain affixed to the ship throughout the ship’s lifetime.

“It is a pleasure for me to be here with Huntington Ingalls officials and the men and women who are building DDG 117,” said Mr. Ignatius, whose wife, Nancy Ignatius, is the ship’s sponsor. “DDG 117 will become part of our country’s proud destroyer tradition. Built tougher than steel by one of America’s leading shipbuilders, constructed by dedicated and skilled shipyard technicians and manned eventually by the world’s finest naval officers and seamen, this new ship will sail for many decades into the future.”

“Every time the men and women of Ingalls craft another destroyer, they build a living, lasting remembrance of either the courage, the leadership or the intellectual contribution of the very best that the Navy and Marine Corps have to offer,” said Capt. Mark Vandroff, the Navy’s DDG 51 program manager.

Ingalls is building three other destroyers — John Finn (DDG 113), which is scheduled to be delivered in 2016, Ralph Johnson (DDG 114), which will launch by the end of the year and Delbert D. Black (DDG 119), which started construction in July.

To date, Ingalls has delivered 28 DDG 51 destroyers to the U.S. Navy. .

NASSCO christens first Kinder Morgan ECO tanker

San Diego Mayor Kevin Faulconer spoke at the ceremony, and the ship’s sponsor, Mrs. Helen Downs, christened the ship with the traditional breaking of a champagne bottle.

 

The ECO tanker, the Lone Star State, is the first of a five-tanker contract between NASSCO and APT, which calls for the design and construction of five 50,000 deadweight ton, LNG-conversion-ready product carriers with a 330,000 barrel cargo capacity. The 610-foot-long tankers are a new “ECO” design, offering improved fuel efficiency and the latest environmental protection features including a Ballast Water Treatment System.

The ships were designed by DSEC, a subsidiary of Daewoo Shipbuilding & Marine Engineering (DSME) of Busan, South Korea. The design incorporates improved fuel efficiency concepts through several features, including a G-series MAN ME slow-speed main engine and an optimized hull form. The tankers will also have dual-fuel-capable auxiliary engines and the ability to accommodate future installation of an LNG fuel system.

“Incorporating new and innovative green ship technology, these tankers are the future of American petroleum shipping. When delivered they will be among the most fuel-efficient and environmentally friendly tankers anywhere in the world,” said Kevin Graney, general manager and vice president for General Dynamics NASSCO.

“This christening ceremony is an important step forward for Kinder Morgan’s expanding fleet of Jones Act product tankers and demonstrates the strong demand for domestic waterborne transportation to move petroleum products and crude oil,” said Robert Kurz, vice president of Kinder Morgan Terminals and president of American Petroleum Tankers. “We look forward to taking delivery of this vessel next month and, along with our seven other operating tankers, providing first-class service to our growing customer base.”

In September 2014, Mayor Faulconer signaled the start of construction of the ECO tanker. In March 2015, San Diego’s First Lady and wife of Mayor Faulconer, Mrs. Katherine Faulconer, laid the keel.

“The Lone Star State is a great example of the kind of innovative technology being employed by NASSCO and our blue tech industry. Its construction has employed hundreds of San Diegans and helped sustain jobs for thousands more,” Mayor Faulconer said. “This ship is a symbol of the jobs and opportunities the maritime industry brings to our city.”

On Friday, October 16, NASSCO shipbuilders began construction on a fifth tanker for APT.

MAN Diesel & Turbo renews agreement with China’s CMP

 

CMP is an engine-manufacturing division of the Chinese State Shipbuilding Corporation (CSSC), one of the largest Chinese shipbuilders.

The new agreement, signed at a ceremony last week in Anqing, China, marks the renewal and continuation of a cooperation that first started in the 1980s.

“The extension of the four-stroke license agreement between CMP and MAN Diesel & Turbo is a tribute to the very first license we bonded 35 years ago,” said CMP Chairman Mr. Zhang Haisen. “Furthermore, the comprehensive cooperation scope refers not only to four-stroke diesel engines, but also to two-stroke low speed engines, CPP propellers, turbochargers, and SCR systems. CSSC values MAN Diesel & Turbo as its premium partner, and sincerely expects to continue this important business partnership to another 35-year milestone.”

“We have enjoyed a long, close cooperation with CSSC/CMP that stretches all the way back to 1980, and over the years CMP has produced a broad range of MAN four-stroke engines, but also small two-stroke engines,” said Klaus Engberg – Senior Vice President and Head of Two-Stroke Licensing, MAN Diesel & Turbo. “Especially over the last decade, our two companies have intensified their technical cooperation, making CMP today one of MAN Diesel & Turbo’s major licensees globally for such engines, and the largest producer of MAN four-stroke engines in China.”

Ulrich Vögtle – Vice President and Head of Large Bore Four-Stroke Licensing – said: “We view our relationship with CSSC as pivotal to our success in giving Chinese customers access to our technology. Accordingly, we are very happy and proud today to be able to officially announce the continuation of our excellent business relationship for the next decade.”

To date, CMP has delivered 5,000 units of MAN four-stroke diesel engines, equivalent to 4,700,000 kW. CMP also holds a license agreement for two-stroke MAN B&W engines, which it too renewed for a decade at a ceremony in Beijing earlier this year.

Headquartered in Beijing, CMP parent CSSC handles shipbuilding activities in the east and south of China and consists of various shipyards, equipment manufacturers, research institutes and shipbuilding-related companies. Some of the best-known shipbuilders in China, such as Jiangnan Shipyard and Hudong-Zhonghua Shipbuilding, are currently owned by CSSC.

Zhenjiang Marine Diesel (ZJMD), CMP’s predecessor, was founded in 1976 and signed a 15-year medium-speed licensing agreement with MAN Diesel & Turbo in May 1980. This was subsequently extended in 1995 and 2005.

Gladding-Hearn delivers new generation pilot launch

The 28 knot vessel is the association’s second Chesapeake Class launch and the first in a new generation of the popular, mid-size pilot boats.

The Somerset, MA, shipyard introduced the Chesapeake Class pilot boat in 2003.Since then, 15 have been delivered to pilot associations throughout the U.S.

The latest improvements incorporate the performance benefits of Volvo Penta’s IPS2 inboard propulsion system.

“The IPS2 system was created to improve the performance and the arrangement of planning hulls like our pilot boats,” said Peter Duclos, the shipyard’s president. “This new generation of Chesapeake launches, named Chesapeake Class MKII, is equipped with the IPS2 pods, which provide what pilots have been asking for: higher speeds, lower fuel consumption, and more comfort.”

With a deep-V hull designed by C. Raymond Hunt & Associates, the all-aluminum pilot boat measures 52.7 ft overall, with a 16.8-ft beam and a 4.5-ft draft.

It is powered by twin Volvo Penta D11, six cylinder, EPA Tier 3 diesel engines, each producing 503 bhp at 2,250 rpm. Each engine is connected to a Volvo Penta IPS propulsion pod, which is fitted with dual forward-facing, counter-rotating propellers and integrated exhaust system, and Volvo Penta’s integrated EPS electronic steering and control system.

The EPS control system and three-axis joystick increases the boat’s overall maneuverability alongside a ship and when docking, says Mr. Duclos.

The financial incentive for the Tampa Bay pilots to optimize fuel economy, vessel handling and comfort led the shipyard to install a Humphree Interceptor automatic trim- optimization system.

“The combination of the Volvo Penta IPS system and the Humphree interceptors gives the pilots higher speeds and improved comfort, while burning 25 percent less fuel than similar Chesapeake Class launches,” says Mr. Duclos.

Electrical requirements are met by a 9 kW Northern Lights generator.

Key design changes to the Chesapeake Class MKII include positioning the wheelhouse aft of amidships to improve comfort and provide for a larger foredeck.

With the pods close-coupled to the engines, the engine room is located well aft of the wheelhouse with easy access to machinery through a deck hatch.

This new generation of pilot boats is also designed to accept a gyro-stabilization system, designed to reduce vessel roll.

The wheelhouse, with forward-leaning windows, is outfitted with five Stidd seats and a settee and cooled by two 16,000 Btu air-conditioning units.

The forecastle, with a 12,000 Btu AC unit, has one berth and an enclosed head.Outside of the wheelhouse are wide side-decks and boarding platforms, port and starboard, on the foredeck.

At the transom is a winch-operated, rotating davit over a recessed platform for pilot rescues operations.

Carnival to bring two more cruise brands to China

Yesterday we reported that Norwegian Cruise line is to customize its second Breakway Plus newbuild for the Chinese market.

Today’s news is that Carnival Corporation & plc (NYSE/LSE: CCL; NYSE: CUK) is to deploy two additional cruise brands in China in 2017.

Carnival Cruise Line and AIDA Cruises will join Costa Cruises and Princess Cruises in the Chinese market, making Carnival Corporation the first company to operate four brands in China – which, it says, “is expected to eventually become the world’s largest cruise market based on surging demand for cruise vacations by Chinese travelers.”
 
The move means that four of Carnival’s ten brands will have at least one homeported cruise ship in China. The plan to deploy two additional ships – one new ship each for both its Carnival and AIDA brands – and operate four total brands in China in 2017 is in line with Carnival Corporation’s long-term, multi-brand strategy to provide Chinese travelers with a variety of vacation options and experiences to meet growing demand across all segments of the Chinese market.
 
“We are excited to introduce our Carnival Cruise Line and AIDA Cruises brands to our fleet in China, giving us a total of four global cruise brands in the market and a unique opportunity to provide a diverse lineup of brands and cruise offerings to Chinese guests who are looking for a great vacation experience,” said Carnival CEO Arnold Donald, who was in Shanghai to announce the news at the 10th Annual China Cruise Shipping and International Cruise Expo (CCS10). “As we execute our multi-brand growth strategy in China, we are emphasizing choice and variety in our offerings to match the different tastes and preferences of Chinese travelers.”
 
“As more and more Chinese are discovering why cruising is the best vacation experience, they are having a great time on our Costa and Princess brands, and we look forward to even more Chinese travelers enjoying vacations on our AIDA and Carnival brands,” said Mr. Donald. “This is an exciting time in China for the cruise industry, and as the world’s largest cruise company and the first global cruise operator in China, we are more committed than ever to helping China become one of the world’s most popular regions for cruise vacations.”

Adding the two new brands follows a July announcement by Carnival Corporation that Costa Cruises and Princess Cruises will  each put a new ship into its China fleet in 2016, making Carnival Corporation the first global cruise company with six total ships based in China. This all adds up to a 58 percent increase in total capacity in China in 2016, including three year-round ships and three seasonal ships in the market. Together, the Costa and Princess brands will potentially offer about four million passenger cruise days in 2016.
 
As previously reported, Carnival Corporation is also exploring potential joint ventures in China with China State Shipbuilding Corporation (CSSC) and China Merchants Group (CMG) designed to accelerate the growth of the overall cruise industry in China, including the possibility of launching a world-class Chinese domestic cruise brand, building new cruise ships in China, and supporting port and infrastructure development.

Cammell Laird to build $307 million polar research ship

The decision follows a 12-month competitive tender process that involved bids from shipyards in the U.K., Spain, Norway, Singapore and South Korea.

The Birkenhead shipyard is expected to cut steel in autumn 2016 and deliver the next generation polar research vessel ready for operation by 2019.

Cammell Laird Chief Executive John Syvret said: “The new contract, which will be finalized later this year, is expected to secure 400 jobs at Cammell Laird and a further 100 jobs within the local supply chain. Cammell Laird has a very successful apprenticeship scheme and would plan to recruit 60 apprentices throughout the term of the contract. Being selected as the preferred bidder in a global tender to undertake such an exciting and major infrastructure project is fantastic news for our workforce, the local region and the U.K. We look forward to helping the U.K. explore the depths of the ocean and push the boundaries of U.K. science.”

The new polar research ship, which will operate in both Antarctica and the Arctic, will be able to endure up to 60 days in sea-ice to enable scientists to gather more observations and data.

It is expected to have ice-breaking capabilities that will allow it to break ice up to one meter thick when traveling at 3 knots and will be able to accommodate up to 60 researchers and technical support staff.

The ship will be the first British-built polar research vessel with a heli-deck to open up new locations for science and will be one of the most sophisticated floating research laboratories operating in the Polar Regions.

Funding for the new polar research ship was announced in April 2014 as part of the U.K. Government’s science capital program.

Cammell Laird has been selected by the Natural Environment Research Council (NERC) through a full competitive procurement process.

NERC Chief Executive Professor Duncan Wingham said: “This new research ship, which is expected to become operational in 2019, will be equipped with onboard laboratory facilities and will be capable of deploying robotic technologies to monitor environmental changes to the polar oceans and will help U.K. scientists continue to lead the world in understanding our polar regions.

“Changes in both the Antarctic and Artic marine ecosystems affect the U.K.’s environment and economy, particularly in industries such as fishing and tourism. The Natural Environment Research Council funds polar research so that as a nation, we can develop policies to adapt to, mitigate or live with environmental change.

“This new polar ship will be a platform for a broad range of science, researching subjects from oceanography and marine ecology to geophysics.”

The new ice-strengthened ship will be operated by British Antarctic Survey (BAS), on behalf of NERC.

ABS offers guide for “SOx Scrubber Ready” ships

 

Instead, when ordering a newbuilding they may prefer to order a ship that is “SOx scrubber ready.”

Classification society ABS says that, Iin order to facilitate future modifications, ship buyers and shipbuilders must make a significant effort to figure out what features should be incorporated on a vessel and incorporate these in the shipbuilding contract.

To support shipowners taking this path, ABS has published the ABS Guide for SOx Scrubber Ready Vessels to support members and clients in preparing newbuilds for future outfitting with a SOx exhaust gas cleaning system (EGCS).

The guide supports the ABS classification notation for SOx Scrubber Ready Vessels by formalizing the process for clients who wish to plan for retrofit of a SOx scrubber at a future date by providing a detailed review and approval and an associated notation.

The SOx Scrubber Ready notation is in addition to ABS EGCS notations that may be assigned for vessels fitted with an exhaust emission abatement system, including SOx scrubbers, selective catalytic reduction systems and exhaust gas recirculation arrangements for NOx emission control, in accordance with the ABS Guide for Exhaust Emission Abatement.

More HERE and HERE

 

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