Despite current global financial crisis, newbuilding order for offshore plant sector is forecast to continue for a while.
Analyst Lee Sang-Hwa from Hyundai Securities revealed on October 17th, "Offshore market is hardly affected by financing, since its main customers are national oil companies and oil majors."
The analyst also said that postponement of new order was not likely to occur in spite of recently depressing finances as newly ordered offshore vessels at this point would operate drilling and production for 20-30 years after delivery in 2015-2016.
Lee said, "In 2009, when getting over from global financial crisis in a previous year, KOSPI went up 45% in a year, however, Korean shipbuilders' share prices were down by 13%, which under-performed about 58% in comparing to KOSPI."
Added, "In the same period, shipbuilding industry faced difficulties, cancellation, rapidly decreased yearly new order, major 3's average orders dropping to $2.6bn by 82% on 2008, etc. However, owing to new order in offshore sector, there would be no sharp decrease in new orders in 2012."