Securing Profitability Through Mass Production of Identical Specifications
Order from European Shipowner... "LNG High-Pressure Engine Technology"
14.5 Trillion Won in Orders This Year, Surpassing Last Year’s Performance
Hanwha Ocean has secured an order for seven liquefied natural gas (LNG) carriers from a European shipowner. The total contract value amounts to 2.5891 trillion won.
According to the Financial Supervisory Service's electronic disclosure system on December 18, Hanwha Ocean signed a construction contract with a European shipowner for seven LNG carriers. The contract period runs from this day until June 30, 2029. The contract amount represents approximately 24% of Hanwha Ocean's most recent consolidated sales at the end of 2024, which stood at 10.776 trillion won.
This order is seen as reaffirming Hanwha Ocean's technological competitiveness in the LNG carrier market. Hanwha Ocean analyzed that European shipowners and charterers showed strong confidence in the carbon emission reduction performance of its proprietary "LNG high-pressure engine." The company believes it secured this large-scale order in the European market, where environmental regulations are tightening, thanks to its technology-driven competitiveness.
LNG carriers are among the most technologically advanced ship types, requiring cryogenic cargo holds, propulsion systems, compliance with environmental regulations, and the trust of financial institutions to transport cargo at extremely low temperatures of minus 163 degrees Celsius. This year, South Korean shipbuilders have monopolized the order volume for these vessels.
All seven vessels in this order will be constructed to the same specifications. By building a large number of ships with identical specifications, the company can maximize efficiency across design, procurement, and production. Hanwha Ocean expects this approach to contribute to stable profitability.
Including this latest order, Hanwha Ocean has secured contracts for a total of 51 vessels so far this year: 20 very large crude carriers (VLCCs), 17 container ships, 13 LNG carriers, and one icebreaking research vessel, amounting to approximately $9.83 billion (about 14.5 trillion won). This already surpasses last year's total annual order intake of $8.98 billion.
Hanwha Ocean plans to continue its strategy of selective, profitability-focused orders by expanding contracts for high value-added vessel types, with LNG carriers at the core.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
