Samsung Heavy Industries Wins Preliminary Offshore Facility Contract Worth Over 800 Billion Won

Signed Contract Worth 869.4 Billion Won with African Shipowner
Preliminary Work Including Design Prior to Main Contract
"Targeting 1 to 2 Orders Annually... Demand Expected to Grow"

Samsung Heavy Industries has reaffirmed its competitiveness in the offshore plant sector by signing a preliminary work contract for offshore production facilities worth 869.4 billion won with a shipowner from Africa.

On July 7, Samsung Heavy Industries announced that it had signed a supply contract for 'preliminary work prior to the main contract for offshore production facilities.' The contract amount represents 8.8% of last year's consolidated sales (9.9031 trillion won). This contract covers preliminary work, including design, before the main contract is signed. Offshore plants are considered a field where the interval between orders is long and the process complexity is high, so winning an order itself is regarded as an indicator of a company's technological capabilities. In particular, for this contract, actual work began on February 18 after reaching an agreement with the shipowner.

A Samsung Heavy Industries official stated, "Global interest in energy security has increased since the Russia-Ukraine war, and investments in offshore facilities have continued steadily due to the shift in U.S. energy policy. We plan to win one to two orders each year, focusing on projects with planned orders in the future."

So far this year, Samsung Heavy Industries has secured orders for a total of 18 carriers: one LNG carrier, nine shuttle tankers, two ethane carriers, four oil tankers, and two container ships. Including the preliminary work contract for offshore production facilities, the company has recorded a total order intake of 3.3 billion dollars (4.5074 trillion won) to date. This represents approximately 34% of its annual order target of 9.8 billion dollars.