Korean top trio likely to win $30b in orders

South Korea’s top three shipyards are likely to win higher-than-expected orders worth at least $30 billion this year on strong sales in the first half of the year, industry sources said. The three companies – Hyundai Heavy Industries Co, Daewoo Shipbuilding & Marine Engineering Co and Samsung Heavy Industries Co – clinched a combined $18.9 billion in orders for ships and marine oil-drilling facilities in the January-June period, or 66.3% of their total annual target of $28.5 billion, the sources said.

Given the first-half records, the value of their full-year orders is expected to exceed the $30 billion mark. Last year, the three shipbuilders’ annual orders totalled $21.1 billion, compared with $21.7 billion in 2004.

The shipbuilders’ impressive first-half performance was attributed to strong demand for oil-drilling facilities. “Due to high oil prices, high demand for drilling ships and rigs boosted sales in the first half,” a Samsung Heavy official said. “We are likely to enjoy strong orders in the second half as well.”

In the first half of the year, HHI, the world’s largest shipbuilder, received orders of $5 billion in the six-month period.

Daewoo Shipbuilding & Marine Engineering and Samsung Heavy Industries, the industry’s No 2 and No 3 players, picked up orders totalling $5.9 billion and $8 billion, respectively. In particular, Samsung?s performance in the first half topped its yearly target of $7.7 billion, the sources said.