Friday, July 29, 2011

Hyundai Samho 5,000TEU order confirmed

Thenamaris Ships Management has ordered two boxships of 5,000 teu from South Korea’s Hyundai Samho Heavy Industries, the Greek owner confirmed.

The Thenamaris pair are due for delivery in August and September of 2013 and are said to be cost $60m-$70m per ship.

They are added to a pair of 4,800 teu units already on order at China’s Zhejiang Ouhua Shipbuilding for the Greek company, traditionally a tanker and dry bulk manager.

At the same time, brokers circulated reports of five boxship newbuildings of 6,700 teu capacity won by Hyundai Samho, although at least some of these appear to be confirmation of ordering activity going back about two months.

Three of the vessels, which are all due to be delivered in 2013, were contracted by Embiricos family-linked Aeolos Management several weeks ago in a first boxship newbuilding project to add to five secondhand container carriers the group already has in operation.

The two other 6,700 teu vessels were reported ordered by boxship specialist Technomar Shipping for an estimated $75m price per vessel.

Published : July 29, 2011

Source: Asiasis


Costamare plans new order

Greek containership owner Costamare is prepared to pursue new opportunities.

The New York-listed company reported net income of $26.2m in the three months to 30 June, compared to a profit of $21m a year prior.

In a statement, finance chief Greg Zikos told investors: “Our business model is focused on optionality; should we see a temporarily depressed market, we have the capacity to move fast and acquire cheap assets; if however, in the mid-to-long term, we have a healthy market, we will benefit from the re-chartering of the vessels coming out of charter over the next years, while we will keep looking for new opportunities.”

Costamare said its adjusted profit weighed in at $26.9m while earnings before interest, taxes, depreciation and amortisation was $65.8m.

Voyage revenues increased by 5% year-on-year to $94.3m.

Costamare said it ended the quarter with cash liquidity of $114.4m and $120m worth of undrawn credit lines.

As of July 22nd, the owner had outstanding commitments related to contracted newbuilds aggregating $810.7m, payable in installments until the vessels are delivered, it said.

Published : July 28, 2011

Source: Asiasis


Samsung wins LNG-fueled vessel

South Korea's Incheon Port Authority (IPA) has designated Samsung Heavy Industries as a preferred bidder for building LNG-fueled ships.

Samsung has embarked on LNG-fueled newbuilding ship to promote eco-friendly Incheon Port.

Construction will begin in the beginning of August and to be completed until August, 2012.

LNG-fueled ship is about 200 gt, 35m long and 8m wide. The construction cost totals KRW 6.95bn ($6.61m). The ship consists of conference room, VIP room, etc, with accommodation of about 50 people.

Eco ship project is pushed forward to comply with international regulation over environment and Korean government's low CO2 and green growth policies.

LNG-fueled ship will be used for various purposes, for instance, to help activities of marketing and investment relations, attract investors to Incheon Port and promote 2014 Incheon Asian game.

Published : July 28, 2011

Source: Asiasis 


Thursday, July 28, 2011

Bangla yards to export 30 ships


A couple of leading shipbuilders of Bangladesh will deliver 30 ocean-going ships to fetch $300 million from their clients mostly in Europe by the end of the next calendar year, shipbuilders said on Tuesday.

To meet the delivery deadline the shipyards are busy building the ocean going and ice-class vessels for their clients also in Africa and Asia.

The Western Marine Shipyard Limited (WMSL), one of the leading shipbuilder, will deliver 20 ocean-going ships worth $200 million to firms in the Holland, Denmark and Singapore. The deals also included two passengers vessels for Karachi Port Trust.

Two ships, each with 5,200 DWT (deadweight tonnage), a passenger ferry, two passengers floating vessel have already been delivered to Germany, Finland and Pakistan.

"We are building the rest seven and a couple of ships with a DWT between 4,100 and 4,800 are complete and will be floated soon," Shakawat Hossain, managing director of Western Marine Shipyard Ltd, told the FE.

WMSL, based in at Kolagaon in Chittagong, on the bank of the river Karnaphuli near the country's main port, some 300 km (188 miles) southeast of the capital Dhaka, is likely to complete its delivery by the end of the current year or early next year.

"The Ananda Shipyard and Slipways Limited (ASSL), the country's pioneer ship exporter, will deliver 10 other ships worth $110 million to European buyers, mainly in Germany and Denmark," said Eng. Saiful Islam, technical director of Ananda Shipyard said.

WMSL is currently negotiating with shipping companies in several European and Middle Eastern countries for building dozens of ships worth $400 million in the coming years.

Ananda Shipyard and Slipways Limited, located at Meghnaghat on the river Meghna, was a pioneer in the sector and has so far won deals to build 26 small ships worth $400 million. The orders came from Denmark, Mozambique and Germany.

Ananda already exported 10 smaller ships to Germany, Mozambique and Maldives, worth $18 million so far after exporting the first-ever Bangladesh-built ship to Denmark in 2008.

Published : July 28, 2011

Source: Asiasis


Major-Minor gap widens

Worldwide newbuilding orders during the first half of this year dropped by 42% from the same period last year. However, new orders for South Korean shipbuilders have skyrocketed in the period, with large shipyards taking over 50% of market share.

Thanks to Korean big shipbuilders' high-value ship technology, they were able to outperform their previous performances, even under recession of entire shipbuilding industry.

These days, gap between shipbuilders with high-technology and those without it seems to be getting larger.

Meanwhile, researcher Lee Seok-Jae from Seoul-based Mirae Asset Securities, forecast that weak business performance of Korean yards will last until the end of 2012, as low-margin newbuildings ordered after the global financial crisis are delivered.

He also expected that new order in H2 would be lower than H1, as shipbuilders would seek to win orders selectively, rather than actively pitching into inking orders.

Large shipbuilders have already reached 70-80% of their target order and winning massive orders in H2 seems hard without enough room in dock slots.

However, newbuilding price would positively rise from selective order intake strategy.

Also, as the International Maritime Organization recently decided to introduce regulation over fuel efficiency, demand for Korean-built eco-ships, which are about 15-20% more fuel efficient than Chinese-built ships, is expected to rise.

Published : July 28, 2011
Source: Asiasis


COSCO eyes more jack-up rigs

COSCO Shipyard is likely to win more market share in the jack-up rig newbuilding market as Keppel FELS, the rig building arm of Singapore-listed Keppel Corp, struggles to find slots for 2013 and early 2014 delivery.

Keppel’s Singapore-listed rival Sembcorp Marine is also likely to get new orders as demand for high specification jack-ups shows no sign of slackening.

JP Morgan analyst Ajay Mirchandani said in a note that two major US-listed rig owners, Diamond Offshore and Noble Corp, highlighted in recent quarterly earnings calls that additions to their respective jack-up fleets via newbuilds were likely.

Noble, which has two existing rig options with SembCorp, said that “within the global jack-up fleet, the delta between the lowest spec and highest spec is getting wider (than has ever been in the past)”.

While this is good news for the Singapore pair, which have historically dominated the jack-up market, the commitments in their existing order books, totalling $4.3bn for SembCorp and $7.5bn for Keppel, could offer a window of opportunity for COSCO to expand its market share in the segment.

According to Citigroup analyst Horng Han Low, COSCO’s offshore business is at a turning point, with its first drillship under construction and a realistic chance of more jack-up orders.

“Despite Cosco’s challenges, the transformation from a ship to a rig builder can be faster than expected,” he said in a note to clients Tuesday.

COSCO won its first jack-up order in 2007 but the next real sign of progress came in May when it won a $356m order for two jack-up rigs for 2013 and 2014 delivery from Singapore-listed operator KS Energy.

COSCO has a cost advantage over the Singapore yards which may offset any lingering worries over execution.

He said COSCO had around 40 ex-Keppel FELS employees working on its rig team and that while projects there may take more managing than at the Singapore yards, the cost could be 10% lower for a similar rig.

Singapore-listed Chinese yard Yangzijiang Shipbuilding is also aiming to join the rig market but has received no orders as yet.

The new entrants reflect a bullish long-term outlook for offshore oil & gas exploration and production investment, given sustained high oil prices.

Published : July 28, 2011

Source: Asiasis


Wednesday, July 27, 2011

Korean shipyards summer vacation

South Korea's shipbuilding and heavy industry will have a long summer vacation, when hot weather reduces productivity.  

Most of those who work in Hyundai Heavy Industries go on a vacation until August 5th. Officially it is 10-day leave, however, thanks to weekends included, they can have 16 long days of vacation.

Daewoo Shipbuilding & Marine Engineering (DSME) begins vacation from August 1st to 12th.

DSME has executed two-week summer vacation since 2007, for the first time. In 2009 and 2010, it was shortened to one week in effect of global financial crisis. Luckily, this year, in three years, DSME begins two-week vacation, official five days + five days of weekends and anniversary of DSME founding day. KRW 500,000 ($475) of vacation bonus is provided.

Samsung Heavy Industries and STX Offshore & Shipbuilding takes one week of vacation from August 1 - 5.

Long summer vacation is to improve efficiency by refreshing oneself.

Published : July 25, 2011

Source: Asiasis


Korea follows suit: IMO

South Korean government is to introduce laws enforcing eco-friendly ship construction in the country after International Maritime Organization's recent decision to adopt Energy Efficiency Design Index.

The Ministry of Land, Transport and Maritime Affairs plans to come up with related regulations by the end of 2012.

From 2013 onwards, newbuildings will have to be constructed and operated in accordance with legal standards regarding carbon emission (g/ton·mile).

The MLTM is to form a task force, comprising officials from the government and private sectors, in November.

Meanwhile, the new eco ship regulation would have a great effect on shipbuilding, shipping, steel and equipment industries.

An official from Hyundai Heavy Industries said, "IMO and the government's decision would result in a big change in the market. Large companies will benefit from it but smaller firms would face more difficulties."

Published : July 27, 2011

Source: Asiasis


Korea eyes ECO-ship boom

South Korea's shipbuilding industry is prospected to make bigger gap from China and Japan with high-value technology for eco-friendly ships.

International Maritime Organization has decided to introduce Energy Efficiency Design Index (EEDI) on new ships after 2013.

When EEDI, which regulates greenhouse gas emission, applies from 2013, energy efficiency will need to improve under tightening standards in stages by around 30% in 2025.

Korean shipyards are expected to be the most beneficiaries, as they already secured the cutting-edge technology for eco ships.

Korea's shipbuilders have already applied patents for hull type for minimizing fuel consumption, Heat Recovery Steam Generator (HRSG), equipment for reducing flow-velocity resistance, etc, since around ten years ago.

Therefore, Korean shipyards with eco-friendly technology are to win massive newbuilding orders in the near future.

Published : July 27, 2011

Source: Asiasis


Tuesday, July 26, 2011

Keppel to complete FSO conversion

Keppel Shipyard Ltd (Keppel Shipyard) is on track to complete the fast-track conversion of FSO Sepat, a floating production and storage (FSO) unit, for Bumi Armada Navigation Sdn Berhad (Bumi Armada).

With a storage capacity of 500,000 barrels of oil, FSO Sepat will be deployed in offshore Malaysia for the development of the Sepat field for PETRONAS Carigali Sdn Bhd.

Naming the vessel today was the Lady Sponsor Datin Aspalela Mohd Yusop, the spouse of Datuk Abdullah Karim, President of PETRONAS Carigali Sdn Bhd.

Mr Nelson Yeo, Managing Director of Keppel Shipyard, said, "We are pleased to have been entrusted with all of Bumi Armada's FPSO and FSO conversion projects to date. FSO Sepat is another conversion unit that Keppel is delivering to Bumi Armada this year. It follows shortly after our delivery of FPSO Armada TGT 1 in June. We are also grateful and honoured to be able to contribute to Petrofac and PETRONAS Carigali's oil and gas activities in Malaysia.

"The fast-track conversion of FSO Sepat was enabled by Keppel, Bumi Armada, Petrofac and Petronas' strong teamwork and shared commitment. I am pleased to inform that there has been no reportable lost-time incident on this project."

FSO Sepat had been converted from the tanker AMORE, and work at Keppel Shipyard is expected to complete in the third quarter of 2011. Keppel Shipyard's work scope on the FSO includes refurbishment and life extension works, fabrication and installation of the cargo offloading balcony and helideck, installation and integration of a 12-point spread mooring system, and the upgrading of accommodation facilities.

Published : July 26, 2011

Source: Asiasis


Hanjin-built DSV deployed

Gulmar Offshore’s newest diving-support vessel (DSV) is heading to Brazil after securing a contract with Petrobras and geophysical contractor Fugro.

Sharjah-based Gulmar says the 11,880-hp Gulmar Atlantis (built 2011) will work a six-month charter that will involve diving and ROV services.

In a note to clients, Gulmar chief Patrick Chapalain said: "Brazil is a very dynamic market for offshore oil and gas. This contract will be an opportunity to display the versatility and high-end capabilities of the vessel, in terms of SAT diving, ROV and construction support, both in shallow and deep water."

Chapalain says US offshore owner Otto Candies, which sealed a five-year DSV deal with Petrobras in April, is also involved in the project.

Hanjin Heavy Industries & Construction's Youngdo facility in Busan, South Korea delivered the Gulmar Atlantis in March. Its sister ship, the Gulmar Da Vinci, is expected to hit the water in around September.

Both ships were ordered in 2007 for more than KRW 100bn per ship.

Published : July 26, 2011

Source: Asiasis


Petrobras Capex Plan

Brazilian state-controlled oil major Petrobras will earmark more money for exploration and production in its five-year investment plan.

The Rio de Janeiro-based company approved a $224.7 billion investment programme for the 2011-2015 period that showed significant changes in its composition but totalled little more than the $224 billion plan for the 2010-2014 period, according to a securities filing, Reuters reported.

The investment plan, currently the largest in the oil industry globally, aims to help Petrobras tap some of the world's largest deep-sea oil deposits and more than double production by the end of the decade to about 6.42 million barrels per day.

The company will invest the equivalent of 57% of total capital expenditures in extracting oil, compared with 53% in the previous plan, the filing said.

Refining, transport and sales activities will account for 31% of total investment, compared with 33% previously.

Published : July 26, 2011



Monday, July 25, 2011

Samkang in “Dokdo” platform project

South Korea's Samkang M&T has won a KRW 3bn ($2.9m) contract to supply all thick steel pipes needed to build Dokdo marine science platform.

Delivery is set by the end of February, 2012.

The company specializes in thick steel pipes used in offshore structures.

Back in April this year, Samkang M&T also won a contract to supply an offshore structure to France's Technip.

Samkang was approved by Technip as an Engineering, Procurement & Construction Company last December and the first supply contract was clinched in April.

Meanwhile, Dokdo, also known as the Liancourt Rocks, is a group of small islets in the East Sea.

Sovereignty over the islets is disputed between South Korea and Japan but Dokdo has been administered by South Korea, which has its Coast Guard stationed there.

Published : July 22, 2011

Source: Asiasis


Shipbuilding Boom in Africa


South Korean shipbuilders spur in entering African market, which is one of emerging countries with abundant natural resources.

Hyundai Heavy Industries is planning to construct offshore-plant factories in Nigeria and Daewoo Shipbuilding & Marine Engineering (DSME) is also in consideration of building shiprepair yard in South Africa.

Korea's big shipbuilders have been preparing to enter into BRICs and middle east region by reinforcing relationships and performing consultations.

Moreover, now they are moving forward to expand into a new market, Africa.

Hyundai signed the MOU with Nigerian government over constructing factories in Brass island, located in east-south of Nigeria in June.

Also, it has already built LNG shipping company jointly with Nigerian-state oil company to build offshore facilities and LNG carriers in 2007. Hyundai is seemed to buildup a favorable relationships with Nigeria, nation of abundant resources.

DSME is also known to plan to construct a shiprepair yard in Richard bay, the republic of South Africa.

DSME is to invest about $6bn to benefit from repair of ships sailing southern shore.

It aggressively pushes into African market, as DSME already is in operation of joint shipping companies in Nigeria, took over 30% shares of PAENAL Shipyard in Angola, etc.

Published : July 25, 2011

Source: Asiasis


Hyundai doubles orders

South Korea's Hyundai Heavy Industries announced that new order for shipbuilding in H1 has increased over twice as much as the same period last year, to $8.52bn.

Hyundai won $1.26bn orders of four containerships, one oil-tanker, two LNG carriers, one LPG carrier, one special ship and naval vessel, etc, just in June.

As of the end of June, Shipbuilding has already reached over 10% of order target.

In the first half of 2011, the Korean shipbuilder recorded total 40 ships of new orders, including nine drillships, four containerships, three oil-tanker, three LNG carriers, one special ship, one naval vessel, one pure car carrier, etc.

Its orderbook as of the end of June counts at 191 vessels, decreased 4% to $24bn from the previous month.

In case of Offshore & Engineering division, order intake has increased by 21% to $3.23bn from the first half 2010, however, winning orders has been slowing down since April.

Published : July 25, 2011

Source: Asiasis