K-Shipbuilders Shift to High-Margin Vessels as Orders Slow

Major South Korean shipbuilders are strengthening selective order strategies that put profitability ahead of volume. According to the shipbuilding industry on the 9th, gas carriers such as LNG, LPG and ethanol vessels account for about 70% of HD Hyundai Heavy Industries’ order backlog, while LNG carriers are reported to exceed 60% of Hanwha Ocean’s backlog. Samsung Heavy Industries is focusing on FLNG, a high-priced offshore facility with operating margins of about 15% to 20%. The shift comes as global orders slow. Clarkson Research data show first-half orders fell 54% to 19.38 million CGT from 42.58 million CGT a year earlier. The industry is seeking to defend earnings by prioritizing high-value vessels. Source: hankyung.com