DSME wins $517 mln deal for LNG carrier duo

March 14, 2023, by Jasmina Ovcina Mandra

South Korean shipbuilder Daewoo Shipbuilding & Marine Engineering (DSME) has won a construction order for two LNG carriers.

The shipbuilder disclosed on the stock exchange that the company behind the order was a shipowner from Oceania, without revealing the company’s name.

The delivery of the two LNG carriers is scheduled to be completed by mid-June 2027.

The contract is worth KRW 679.4 billion ($ 517.4 million), the filing said.

This is the second order revealed by DSME this year. The South Korean shipbuilder reported its first order for this year in February.

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

Vessels

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.

Meanwhile, DSME is being acquired by South Korea’s defense and energy conglomerate Hanwha Group under a $1.5 billion deal. 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.

South Korean shipbuilders are resuming their winning streak from last year as they reap fruit from the growing demand for high-end ships featuring dual-fuel propulsion and advanced technology.

The country’s key ship manufacturers have secured over $8 billion in new orders since the beginning of this year. The strong demand for LNG carriers and dual-fuel containerships, mainly powered by methanol, have been the preferred choice of owners since pushing the orderbook tally.

However, this year the country’s majors have lowered their targets with DSME setting sights on orders valued at $10 billion this year, 42.8 percent lower than last year’s target of $17.5 billion, data from Korea Times shows. Samsung Heavy Industries (SHI) is targeting $10 billion against last year’s $15 billion, and KSOE is yet to disclose its targets.