Jung Sung-leep, president of Daewoo Shipbuilding and Marine Engineering Co. (DSME), right, shakes hands with Arne Fredly, largest shareholder of Hunter Group, after signing a very large crude carrier (VLCC) contract in Oslo, Norway, on Friday (local time). [Photo provided by DSME]
South Korea’s Daewoo Shipbuilding & Marine Engineering Co. (DSME) has won $273 million prospective order from Norway’s Hunter Tankers AS for three very large crude carriers (VLCCs), the company said on Monday.
According to DSME, one is confirmed. The decision on two others will be made within the year.
Hunter Tankers, a wholly-owned subsidiary of Hunter Group, launched its own shipping business in February after placing its first VLCC order to DSME. This year alone, the company ordered 10 VLCCs from DSME and has plans to place additional orders as it expands its fleet.
The latest VLCC order involves building a 336-meter-long and 60-meters-wide crude oil carrier. The VLCCs DSME won this year all apply the same design and specifications, maximizing benefits from enhanced productivity and profitability from repeated construction and delivery.
DSME, meanwhile, has solidified its presence as a VLCC builder this year.
According to shipbuilding and marine industry tracker Clarkson Research Services, DSME has won 18 of 41 global VLCC orders placed so far this year, accounting for 44 percent of the total. The latest order is based on the latest vessel contract price that has recovered above $90 million level in August after two-year slump.
So far this year, DSME has won 38 orders worth $4.86 billion including 12 liquefied natural gas (LNG) vessels, 18 VLCCs, 7 very large container vessels, and one special ship. The pipeline has been its best in four years, achieving 67 percent of its $7.3 billion target for this year.
On Monday, DSME shares fell 2.18 percent to end at 29,100 won ($25.89) in Seoul.
By Kang Doo-soon and Lee Eun-joo
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