With increasing demand for LNG, orderings for LNG carrier, offshore plant, drillship, etc. are expected to grow. Moreover, when the economies in Europe and the US recover, followed by rising newbuilding price, shipbuilders would gain moderate earnings in the commercial ship sectors too.
Also, if Brazil, recently actively engaged in deep-sea field development, places additional orders for drillship, etc. in the second half of this year, South Korean shipbuilders are likely to secure the order.
According to LIG Investment & Securities, Petrobras of Brazil is in the pipeline of ordering 15 drilling rigs within this year.
LNG carrier sector is also expected to stay strong, with Novatek and Total, partners for Russia's Yamal LNG project, planning to give orders for a total of 16 177,550-cbm LNG carriers during the second half of 2012.
Besides LNG carrier, LNG-FPSO and FSRU orderings are prospected as well. If the first contract is sealed, this would lead to additional ordering.
Meanwhile, analyst Yum Dong-Eun, HMC Investment & Securities said, "If newbuilding price goes up by 10-20%, shipbuilders' share price would grow up consistently."
Orders for tanker, containership and bulker are limited, except LNG carrier sector, however, if macroeconomic condition improves, the share price would be able to rebound.
However, HMC's Yum added, "To increase newbuilding price, thick-plate price should increase, with resumed orderings for commercial ship and recovery in shipping freight."
Published : April 6, 2012