DSME profit and orders down

It’s reported that its 2013 order target of US$13bn is down 9% from the amount of orders obtained last year.

There is speculation that this is largely down to the decision the company made in 2009 to book orders for ships at lower rates to help stray afloat in the financial crisis.

During 2012, DSME, the third largest shipbuilder in the world, secured orders for 31 vessels, offshore platforms, and submarines worth approximately US$14.2 bn, exceeding its projection for US$11bn.

But it’s not just Daewoo struggling with targets – Hyundai Heavy and Samsung Heavy Industries both failed to meet their order targets last year as overcapacity and economic uncertainties caused demand to slump.

However, Bloomberg reports that the big three are optimistic that demand for offshore facilities, including drill ships and floating production units, will continue to increase in 2013. Added to this, they hope that the demand for vessels may begin to recover in the second half.