DSME nets $248 million from first LNG carrier order in 2023

South Korean shipbuilder Daewoo Shipbuilding & Marine Engineering (DSME) has secured a contract to build one liquefied natural gas (LNG) carrier which represents the shipbuilder’s first order in 2023.

Under the contract worth 314.5 billion won (around $248 million), DSME will build the LNG carrier for an undisclosed shipowner in Oceania.

According to an exchange filing, the vessel is scheduled for delivery by the end of March 2027. Further information about the carrier’s capacity and specifications was not revealed.

Last year, DSME exceeded its order target by 16%, winning $10.4 billion (46 vessels) worth of orders. DSME and its compatriot shipbuilders secured the largest market share for high-value-added, eco-friendly vessel orders in 2022, bagging 58% of the total ordering tally for the year.

South Korea’s defense and energy conglomerate Hanwha Group is acquiring the shipbuilder which has been controlled by the state-run Korea Development Bank (KDB) for over 20 years, with several attempts made over that period to find a buyer falling through.

Hanwha signed a $1.5 billion agreement for the acquisition of a controlling stake in the shipbuilder in December 2022, following a tentative takeover deal with KDB in September and moved forward with the acquisition after no other bids were submitted.

In line with the terms of the deal, Hanwha will take over 49.3% stake in DSME by acquiring over 104 million newly issued shares while KDB will retain 28.2% stake.