Hanwha Ocean Achieves Consecutive Successes in Overseas Expansion... Secures Orders for Two Ultra-Large Crude Oil Carriers

Contract Worth 378.4 Billion KRW Signed with Greek Shipowner
Unit Price Exceeds Market Rate, Driven by Technological Edge
Earlier Secured Record-High LNG Container Ship Order from Evergreen

Hanwha Ocean sold two ultra-large crude oil carriers (VLCCs) to a Greek shipping company at prices higher than the market rate. Actively targeting overseas markets, Hanwha Ocean has been achieving consecutive successes this year.

Hanwha Ocean announced on the 1st that it secured orders for two VLCCs at $129 million each (approximately 189.2 billion KRW), totaling 378.4 billion KRW. This amount corresponds to 3.5% of the 2024 revenue target of 10.776 trillion KRW. This announcement followed reports that Hanwha Ocean had signed a Letter of Intent (LOI) for the construction of two VLCCs with the Greek shipping company 'Capital Ship Management' at the end of last month, indicating that the deal has been concretized.

Hanwha Ocean Ultra Large Crude Carrier (VLCC). Photo by Hanwha Ocean

According to Clarkson Research, a specialized institution for shipbuilding and shipping market conditions, the market price for a VLCC is $125 million. Hanwha Ocean signed the construction contract at $129 million, exceeding this price. A Hanwha Ocean representative explained that the company was able to enhance profitability based on its differentiated technological capabilities, extensive construction experience, and ability to apply eco-friendly technologies.

Hanwha Ocean has recently been particularly active in overseas sales activities. Compared to Samsung Heavy Industries and HD Hyundai Heavy Industries, which maintain their existing overseas offices, Hanwha Ocean established more than seven additional overseas subsidiaries in the U.S., the U.K., Singapore, the Netherlands, and other locations over about one year from 2023 to 2024. In Greece, where the recent order was secured, Hanwha Ocean has been conducting sales activities centered on its Athens Alimos branch.

On the 17th of last month, Hanwha Ocean secured an order for a 24,000 TEU ultra-large liquefied natural gas (LNG) dual-fuel container ship from Taiwan's Evergreen at a record high price (388.1 billion KRW per vessel). The company has set a policy to implement a selective order strategy that ensures profitability.