Thursday, June 23, 2011

Hyundai confident in options

South Korea’s Hyundai Heavy Industries (HHI) is forecasting a tailing off of ship orders in the second half, but remains confident of more drillship orders.

Talks are ongoing with customers over options to build three more drillships and two more LNG floating storage and regasification units (FSRUs).

Boss Kim Oi-hyun told Dow Jones: "We expect to sign those options unless any financing problems come up with our clients."

Notable companies with drillships on order include Noble and Diamond Offshore, while Hoegh LNG has options for two more FSRUs.

Kim added: "Orders for nine drillships were the biggest catalyst in the first half but in the second half LNG vessels will likely help boost orders."


Hyundai Heavy expects ship orders to recover from "a difficult year" in 2010, when the firm had orders totalling $3.76bn.

Kim said the company doesn't plan to expand its two shipyards to meet rising orders for drillships and LNG carriers, and will instead maximise productivity at the Ulsan and Gunsan yards.

Ulsan shipyard has already received new orders during the January-May period to build drillships, containerships and LNG floating storage units, etc. valued at $7.27bn, almost reaching its target of $7.47bn.

Published : June 23, 2011

Source: Asiasis


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