South Korean shipbuilders are expected to continue order intake momentum in the latter half of the year, centering on LNG carrier newbuilding orders.
Seoul-based Hana Daetoo Securities analyst Kim Hyun said, "LNG carrier newbuilding orders resumed in four years and this would relieve worries that newbuilding orders may discontinue after containership and drillship order spree in the second half of the year."
He said, "LNG development, catalyzed by nuclear plant crisis in Japan, will expand in Asia-Pacific region and LNG on/offshore facilities orders will increase in earnest, centering on Australia and Southeast Asia."
"Newbuilding orders for LNG carriers and new concept LNG production/storage facilities will become blue ocean for South Korean shipbuilders," he added.
Kim said, "As of May, 'Big 3', namely Hyundai, Samsung and Daewoo, are estimated to have achieved 49% of their combined annual order target. In the second half of the year, they would clinch orders for drillship and containership options, LNG carriers and offshore facilities, over-attaining their order targets by 20.4% on average."