Korean shipbuilding industry is prospected to keep its favorable contracting performance in the second half of this year.
Analyst Choi Kwang-Sik from LIG Investment & Securities of Korea said, “Korean Big3 shipbuilders won $22.7bn during the first half and it will approach $34bn when including LOIs signed and orders to be inked, achieving 80% of annual order aim of the year, $41.3bn.”
Choi thought that firm order progress will be maintained in the second half, however if considering overly strong performance of offshore production facilities in the first half, orders contracted in the second half could be far behind on the quantitative basis. He stressed it is quality that matters though and what to focus on in the second half is an increase in newbuilding prices.
Choi said that it is possible enough to see ship values increase, backed by orderbook rises in several vessel types and the rebound of Korean shipyards' orderbook.
Meanwhile, the analyst suggested a prospect for FLNG that about $47bn will be invested in FLNG facilities by 2019 and said that Malaysia’s Petronas planned to place the third and fourth FLNG orders later on. Its 2nd FLNG project is currently in the FEED process, carried out by two consortiums, Samsung Heavy Industries-JGC and etc., with its EPC order planned late this year.
Choi mentioned that two consortiums including Hyundai Heavy Industries and etc. are presently in the final competition for winning Eni’s Jangkrik Floating Production Barge. The project’s FEED is scheduled to complete in August with final investment decision (FID) to be made within this year for production to commence in 2016.