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Samsung Heavy bags 240 bln-won order for 4 oil tankers

All News 13:56 October 12, 2016

SEOUL, Oct. 12 (Yonhap) -- Samsung Heavy Industries Co., a major shipbuilder here, said Wednesday it has secured a 240 billion-won (US$214 million) deal to build four oil tankers.

Under the deal with Norwegian firm Viken, Samsung Heavy will build two 123,000 deadweight ton (DWT) oil tankers and two other oil tankers that are 157,000 DWTs.

The latest deal came two weeks after the shipyard clinched a 420 billion-won deal to build two LNG carriers, marking the first contract in almost one year.

Samsung Heavy is also set to win more deals valued at a combined 3 trillion won, including from a contract to build offshore facilities.

Samsung Heavy is targeting $5.3 billion worth of orders for the year, and has met 11 percent of its annual order target.

South Korean shipbuilders have been under severe financial strain since the 2008 global economic crisis, which sent new orders tumbling amid a glut of vessels and tougher competition from Chinese rivals.

The country's top three shipyards -- Hyundai Heavy Industries, Samsung Heavy and Daewoo Shipbuilding & Marine Engineering Co. -- suffered a combined operating loss of 8.5 trillion won last year. The loss was due largely to increased costs stemming from a delay in the construction of offshore facilities and an industrywide slump, with Daewoo Shipbuilding alone posting a 5.5 trillion-won loss.

The shipbuilders have recently drawn up sweeping self-rescue programs worth 10.35 trillion won in desperate bids to overcome the protracted slump and mounting losses.

Samsung Heavy bags 240 bln-won order for 4 oil tankers - 1


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