Friday, September 30, 2011

Seoul buys 11 vessels

Korea Asset Management Corporation (KAMCO), which manages ship funds with structural adjustment fund, is to purchase additional 11 ships from small-and-medium shipping companies with bad liquidity.

KAMCO revealed on September 29th, "On account of slow recovery of shipping market and spread of liquidity crisis, ship purchasing request increases. Thus, we made a decision to buy 11 ships by the end of this year."

KAMCO is known to have signed term sheets for 11 vessels from six shipping companies out of 36 ships from 10 companies, which applied ship purchase by August 18th.

It plans to buy economically feasible ships of low-loaned or long-term contracted through inspection.

This round of purchase is focused on small-and-medium shipping companies which are urgently in need of fresh liquidity.

Five bulkers, three boxships and two tankers totalling KRW 320bn ($286m) will be purchased.

However, since term sheet carries no legal binding, purchase or related conditions can be altered.

KAMCO plans to complete ship purchase by the end of this year after discussion on detailed conditions with shipping companies.

Published : September 29, 2011


Samsung smallest decline

Kyobo Securities of South Korea kept its buy opinion while down-adjusted target share price to KRW 35,000 ($29.4) from KRW 55,000 on Samsung Heavy Industries.

According to Kyobo, Samsung secured the largest new order among Korean Big3, relatively higher portioned for offshore plant, during the first half, however, market uncertainty fogs up earnings results afterwards.

Analyst Lee Kang-Rok from Kyobo forecasts, "Samsung would have 2% increased revenue of KRW 3.2trn in Q3 on the same period last year. And operating profit would lower to KRW 235bn by 11.1% and 30.7% on Q2."

Added, "Operating margin would also down by 3.4%p and 1.1%p on Q2 and Q3 2010 each, to 7.3%."

But the decline would be the smallest among Big3, he stressed.

Published : September 29, 2011


Arctic 'Blue Ocean'

The Arctic is rising as a new market with full of oil and gas resources to shipbuilding industry.

According to a recent report by Visiongain on oil and gas exploration and production market in the Arctic, the market would total $11.93bn this year.

Demand for polar-sailing tanker, LNG carrier, offshore plant and others is predicted to surge, seeing the market to grow for a decade.With improved resource developing technology, exploration is now under a vigorous stage. U.S. Geological Survey estimates 90 billion barrels of unrevealed oil deposits and 1,668 trillion cu ft. of gas deposits.

Not many have run into resource development in the Arctic yet. And fast profits are anticipated, as highly risky as it is.

Meanwhile, when the development begins in full scale, shipbuilding industry would meet another boom of newbuilding order for ice class ships and plants.

South Korean Shipbuilders are already in preparation for the Arctic specialized market.

Samsung Heavy Industries holds newbuilding technology for icebreaker and already constructed the world largest offshore platform, installed in Sakhalin in July 2006.

Hyundai Heavy Industries is under development of icebreaking commercial ship and welding technology for polar LNG carrier and Daewoo Shipbuilding & Marine Engineering and STX Offshore & Shipbuilding also have ice class ship technologies, as well.

Even though, full-fledged resource development in the Arctic region has not been started, if it proceeds, Korean shipbuilders would preoccupy the market with high-end technology.

Published : September 29, 2011


Thursday, September 29, 2011

STX wins cruiseship

Korean-owned STX Finland Oy and Germany's TUI Cruises on Sep. 27 signed a contract for the design and construction of a 97,000 GT cruise vessel.

The sophisticated and highly innovative cruise vessel is scheduled to be delivered in spring 2014.

The vessel has many environmentally friendly features, with a particular emphasis on the vessel's energy efficiency.

The project will bring some 5,500 man-years of labour to STX Finland's Turku shipyard.

TUI Cruises has an option to order another ship subject to the decision of TUI Cruises shareholders.

The vessel will be approx. 295 meters long and approx. 36 meters wide. The ship will have 1,250 staterooms and will serve maximum of 2,500 passengers and a crew of 1,000 persons.

High balcony ratio will ensure that most of the passengers will have a possibility to enjoy their own balconies during the cruise. The ship has a wide variety of restaurants, a theatre, a spa, a nightclub and a large deck area which all are carefully designed to ensure a unique cruising experience for passengers of all ages.

"We are extremely pleased to sign this contract with TUI Cruises. This order is highly important for STX and STX Finland. By building this innovative ship we continue our successful and long history of building top class cruise vessels", says Sujou Kim, CEO of STX Europe and STX Finland.

"This is a very important contract for STX Finland's Turku Shipyard and for the entire Finnish maritime cluster. We are delighted to deliver to TUI Cruises their first newbuilding which will represent the next generation of energy efficient and environmentally friendly cruise ship", says Jari Anttila, Director of STX Finland's Turku Shipyard.

"Due to its outstanding positioning as a shipyard and long-term cooperation with Royal Caribbean Cruises, we trust that STX Finland is a great partner for us and will successfully realize our ideas in the new ship", says Richard J. Vogel, CEO of TUI Cruises.

Published : September 28, 2011


Indian take-off

Pipavav Defence & Offshore Engineering of India is known to concentrate on its business expansion.

Pipavav secured a cooperation with state-owned Mazagon Docks and prepared for export-newbuilds with renovating yard on west coast of India, INR 13bn ($264m) invested.

Moreover, the major private shipyard is to be distinguished in commercial-ship market.

Pipavav and Mazagon made a decision to establish a new joint-venture 'Mazagon Docks Pipavav,' with 50-50 investment. This is the first private and government cooperation in India to newbuild warships.

Mazagon now secures about INR 1trn of orderbook for navy vessels, among which 160-170m long would be built at Pipavav's Indian-largest dry dock, with 662m in length and 65m in breadth.

Officials from Pipavav said, "Mazagon Docks Pipavav would endeavor to make early deliveries of Mazagon's warships and submarines." Besides the joint-venture company is under negotiation of winning new orders for battleships from six friendly countries and is possible to ink $2bn of new order from Russia for frigate, which already was signed for a memorandum.

Pipavav mapped out a strategy to raise competitiveness in commercial ship market, by being noted in military industry owing to recent cooperation with Mazagon.

Recently, emerging countries are improving their shipbuilding capacity, based on rapid economic growth and lower labor costs. Also, India is possible to show explosive growth with production of iron ore used in heavy plates, which is indispensable for shipbuilding.

Published : September 28, 2011


1st VLCC for G-Type engine

Greek ship management company Almi Tankers S.A. is set to establish itself as a market front runner with the new ultra long stroke G-type engine tailor-made for Very Large Crude Carriers.

Athens-based ship management company Almi Tankers S.A. will be the first to equip two VLCCs with the very first new 7G80ME-C9.2 engine launched by MAN Diesel & Turbo.

The engines will be built by Hyundai Heavy Industries in South Korea with test bed running in January 2013.

The vessels will be built at Daewoo Shipbuilding and Marine Engineering with delivery scheduled for May and December 2013.

Earlier this summer Athens-based shipowner Thenamaris placed an order for four 6G80ME-C9.2 engines to power four 5,000 TEU containerships, to be built by Hyundai (HSHI) in South Korea.

However, VLCC was originally the primary target ship type behind the introduction of the G80ME-C9.2 engine and MAN Diesel & Turbo is also currently involved in several, active VLCC projects where this ultra long stroke design is the preferred engine choice.

Published : September 28, 2011


Wednesday, September 28, 2011

Hyundai orders past $20bn

Hyundai Heavy Industries of South Korea rapidly increased its new order by 57% and turnover by 15% during Jan-Aug period on the same period last year.

Hyundai announced that it recorded KRW 1.985trn ($1.68bn) of turnover in August, up by 9.73% comparing to the same month 2010, on K-IFRS stand-alone basis.

Accumulated sales year-to-August jumped 15.05% to KRW 16.2276trn.

During the same period, accumulated new order was $20.3bn, grew 56.88% from the same period last year.

Shipbuilding division hiked to $8.9bn by 201.61%, Offshore & Engineering division rose 23.73% to $3.3bn and Engine & Machinery also climbed to $2.6bn by 76.04%. On the other hand, Industrial Plant & Engineering fell 49.21% to $933m.

Meanwhile, Hyundai with $3.8bn new-order target in Industrial Plant & Engineering, is promoting construction of plant equipment factory in Nigeria and participating in $6-7bn of Brass LNG project in a 50-50 consortium with Hyundai Engineering & Construction, which is predicted to make better use of Nigerian plant-equipment factory, if Hyundai succeeds to win the project.

With a tendency to have higher performance in the second half, this division is forecast to show an outstanding performance during H2, while Shipbuilding stutters, which already exceeded its new-order target of $7.47bn.

Published : September 28, 2011