Friday, June 24, 2011

Kiewit lays off 250

Canada's Kiewit shipyard has laid off 250 people after it finished work on two provincial ferries.

The move has led fisheries minister Clyde Jackson to question its US owner Peter Kiewit Infrastructure's commitment to the Newfoundland facility.

The news comes just two months after Kiewit pulled out of the race to win a slice of Canada's massive $35bn government newbuilding programme over the next 30 years, saying it did not have the resources to pull a bid together.

Jackson said: "Now it's time for them to step up and further commit to the area, and that means get out there and seriously get the work and bring it into the area."

Shipyard union CAW said the redundancies come while Kiewit is working on two big contracts in the province: an oil production platform for the Hebron field and a nickel processing facility in Long Harbour.

The union wants some of that work to be done at Kiewit in Newfoundland.

Published : June 24, 2011

Source: Asiasis


Yangzijiang shares underestimated

Barclays Capital has branded shares in Yangzijiang Shipbuilding as too cheap after the privately-run large shipbuilder grabbed its second giant containership order in just two weeks.

Peter Dohle has penned an LOI for eight 10,000-teu vessels at the yard hot on the heels of it landing a potential $2.5bn contract for up to 25 10,000-teu vessels with Seaspan.

News of the latest capture, which is supported by a $1bn finance string from China Development Bank, failed to ignite Yangzijiang’s shares in Singapore yesterday.

Jon Windham of Barclays Capital said in a note to clients: “YZJ is too cheap for a yard winning this many orders.”

He notes the Seaspan and Dohle contracts have swelled the Yangzijiang’s orderbook, which sat at $5.4bn at the end of the first quarter, by 28%.

Windam, who describes the Dohle deal as a “significant win” for the yard, added: “We continue to view YZJ as the best positioned of the listed Chinese shipyards to win further container orders in 2011, given its proven track record in delivering quality vessels on-time.”

Published : June 24, 2011

Source: Asiasis


Samsung wins shuttle tankers

Samsung Heavy Industries inked a newbuilding contract for shuttle tanker quartet.

Teekay Offshore says the four DP2 suezmax shuttle tankers will be built by Samsung for delivery in mid and late 2013.

A Samsung spokesman confirms the deal and says the contract is a new order rather than an existing contract penned long time ago.

He refused to reveal further details like price tag or payment terms citing a confidentiality clause on the contract with the owner.

Meanwhile, Teekay Offshore signed 10-year deals with BG Group to charter out the new DP2 suezmax shuttle tankers. While financial terms were not disclosed, the company did say the contracts include extension and purchase options.

Based in Bermuda, Teekay Offshore owns 40 shuttle tankers, of which five are newbuildings.

Published : June 24, 2011

Source: Asiasis



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


Korean dominate high-value

Chinese shipyards took the first place by new ship orders last year by winning massive orders for ordinary commercial ships while newbuilding prices fell greatly, but this year South Korean rivals are leading the newbuilding market by winning high value-added vessels like ultra-large containerships, drillships and LNG carriers.

South Korean yards won orders for 37 ships last month, beating Chinese which won just 17-ship orders, according to latest monthly report by Clarksons.

South Korean won orders for 8,500-13,000TEU boxships and LNG carriers but Chinese mostly secured bulker orders totalling 11 units.

In the first five months of the year, South Korean shipbuilders won 52% containerships, 13% LNG carriers, 12% bulkers and 8% tankers.

In contrast, Chinese won 58% bulkers, 20% containerships and 11% tankers.

In May global newbuilding orders stood at 70 ships, plummeting from 116 ships in April.

During January-May, newbuilding orders valued at $39.6bn for 447 ships of 26.9m dwt. This is down 51% year-on-year in dwt terms on an annualized basis.

South Korean yards took $23.4bn orders for 171 ships of 6.5m cgt and 13.3m dwt while Chinese won $5.9bn orders for 178 ships of 3.4m cgt and 10.5m dwt.

South Korean order intake was down 34% y-o-y in dwt terms on an annualized basis while Chinese plunged 61.2%.

Published : June 23, 2011

Source: Asiasis




CSIC gets OK on stake acquisition

China Shipbuilding Industry Co, a major producer of large marine diesel engines, said it won approval from the State-owned Assets Supervision and Administration Commission to acquire stakes in seven subsidiaries belonging to its parent, China Shipbuilding Industry Corporation (CSIC).

The listed company will raise up to 11.5 billion yuan from a private placement of a maximum of 962 million shares at not less than 11.96 yuan per share.

The parent will subscribe to 10 percent of the total size of the private placement.

China Shipbuilding Industry Co will use 3.6 billion yuan of the total funds raised on the stake purchases.

Published : June 23, 2011

Source: Asiasis



Tuesday, June 21, 2011

23 Cruiseship Orders Coming

The European cruise industry was commended at the European Cruise Council’s (ECC) fifth annual conference by Siim Kallas, EU Vice-President and Transport Commissioner, as a key driver in Europe’s economic recovery with high safety and environmental standards.

In his address to the conference, Mr Kallas said: “The European cruise industry sets an example for our maritime sector; a very good environmental record; sophisticated, state-of-the-art ships that are safe and secure; and equipped with competent crews.”

Adding further praise, “I believe it is due to your commitment to quality and sustainability that the cruise industry has enjoyed economic prosperity also during the recent challenging past; succeeding to attract new passengers, promote new destinations and contribute to the economic recovery of many coastal regions. The fact that more than 90% of all cruise ships are built in Europe is a proof of innovative powers of European industry,” he concluded.

The Chairman of the ECC, Manfredi Lefebvre d’Ovidio, hailed the conference as a resounding success, showcasing how the industry is playing a leading role in Europe’s economic recovery.

The event provided the platform for the launch of an analysis of the industry’s contribution to the European economy in 2010.

The headline statistics are as follows:

The European cruise industry generated €35.2 billion of goods and services

5.5 million Europeans cruised last year

European bookings increased by 9.3 per cent over 2009 to command 30 per cent of the global market

The industry employs 307,000 people across Europe – a 54% increase from 2005

Between 2011-2014 the cruise industry will invest €10.8bn (USD 15.2bn) in 23 new ships with capacity for 60,630 passengers, providing an important source of jobs at European shipyards.

Published : June 21, 2011

Source: Asiasis




Samsung order binge continues

Samsung Heavy Industries is forecast to continue its order intake spree in the second half of the year.

Dongbu Securities Kim Hong-gyun analyst said, "Samsung has inked $10.5bn new orders so far this year, attaining 87.4% of its annual order target of $12bn, set at the beginning of the year."

"In the second half the shipbuilder will continue to win a considerable amount of new orders."

He even says Samsung's adjusted target of $15bn orders is quite conservative.

Kim said the South Korean shipbuilding giant is believed to win crude carriers within this month and Utopia cruiseship in the third quarter.

Drillship options stand at eight and four LNG carrier options are remaining.

He also pointed out offshore facilities will lead Samsung's performance improvement as Royal Dutch Shell is already showing signs of 2nd LNG-FPSO project.

Published : June 21, 2011

Source: Asiasis



Chinese interested in 3. Maj

A delegation of Chinese investors have expressed interest in acquiring Rijeka’s 3. Maj shipyard, planning to invest some 63.8 million Euros.

Although aware that the Croatian government has already selected the buyer – Zagreb-based Jadranska Ulaganja d.d. – the representatives of Yiang-su Nordic Investment management company believe there remains room for other potential investors.

They are interested in 3. Maj because of its qualified staff, as well as the possibility of strategic connection between far-east shipbuilding industry with the European that continues to dominate production of highly complex ships.

Published : June 21, 2011

Source: Asiasis

Monday, June 20, 2011

Seaspan to book more 10,000TEU‘s

Canadian shipowner Seaspan Corp is talking to two Chinese shipyards in the hope of extending its massive containership-newbuilding programme.

Sources say another eight post-panamaxes of 10,000 teu could be on the cards if the New York-listed owner can secure long-term charters with China Shipping Container Lines (CSCL).

The development comes after it emerged Seaspan has successfully tied up a long-term charter with Hanjin Shipping for some of its newly contracted newbuildings.

Sources say it has fixed out the seven 10,000-teu vessels booked recently at Jiangsu Yangzijiang Shipbuilding to the South Korean carrier.

Following that Seaspan is said to have contacted state-owned Shanghai Waigaoqiao Shipbuilding (SWS) and Dalian New Shipyard with a project for a second batch of 10,000-teu vessels.

If the orders go ahead, each yard will build four vessels. At least four — those at Dalian — would be chartered out to fast-growing CSCL, which already has 19 Seaspan ships in its fleet.

Published : June 20, 2011

Source: Asiasis

Hanjin to order five 13,000TEU‘s

South Korea’s Hanjin Shipping has confirmed it will spend KRW 923.6bn ($845.9m) to build five 13,000 teu containerships for delivery beginning first quarter 2012 through 2013.

An official from Hanjin declined to name the shipbuilder, but said the order was originally placed in 2008 by an unnamed company for the purpose of chartering the boxships to Hanjin Shipping.

“Now we will take over direct ownership of the vessels,” she said. The spokeswoman added names of the parties involved in this transaction would be revealed some time this week.

While Hanjin was unprepared to reveal any further details, a source close to the deal confirmed the five vessels were part of a series of eight plus one optional 13,100 teu containerships ordered by German KG house MPC Capital with Hyundai Heavy Industries back in 2008.

MPC, which had arranged long-term charter contracts with Hanjin for the ships, wanted to finance the equity part via KG funds. However, this plan derailed when the KG market collapsed in the aftermath of the Lehman bankruptcy.

Published : June 20, 2011

Source: Asiasis




Russia embarks on LNG ambition

Sovcomflot - the largest operator of ice-class LNG tankers - signed a contract with Gazprom Global LNG Limited (GGLNG), a subsidiary of Gazprom, for the long-term time charter of two ultra-modern ice-class LNG-carriers, on 17 June 2011 at the St. Petersburg International Economic Forum.

The long-term time charter provides for a minimum of 15 years’ employment for both vessels each of nearly 170,000 cubic meters cargo capacity.

Sovcomflot emerged as a winner from the selection process, organised by GGLNG, which involved the world's leading LNG shipping companies.

Simultaneously, SCF signed a shipbuilding contract with the South Korean shipyard STX Offshore & Shipbuilding (partner of OAO “USC” in Archtech Joint Venture), which will carry out the construction of the ships.

The choice of shipyard was the result of a tender, held in accordance with SCF Group’s existing procedures for the conclusion of shipbuilding contracts.

Delivery of the first vessel is scheduled for the fourth quarter of 2013, with the second vessel to follow in the second quarter of 2014.

USC and STX signed a protocol of intent involving a stage-by-stage preparation and subsequent start of production of LNG-carriers in Russia by 2015.

At the Forum a trilateral strategic partnership agreement was also signed between Sovcomflot, Royal Dutch Shell and United Shipbuilding Corporation (USC). The agreement provides for co-operation between the parties on organising the construction of LNG vessels at Russian shipyards, incorporating the international expertise of Royal Dutch Shell and Sovcomflot.

Published : June 20, 2011

Source: Asiasis