Hyundai Heavy Industries of Korea is likely to win additional drillships and bag large-scale projects in the second half of 2012.
Analyst Huh Sung-Duk, Hi Investment & Securities said, "Hyundai has recently signed a contract with Rowan Companies for its fourth ultra-deepwater drillship," and "Due to increases in labor costs and equipment prices, the contract worths 6% more than previously ordered drillships."
Huh pointed out "Counting the drillship deal in, Hyundai has signed about $6.2bn from Shipbuilding and Offshore & Engineering divisions, accounting for 43% of yearly target of $14.3bn."
He added "Although the Ulsan-based shipyard saw a relatively weak share prices by unsuccessful offshore-plant contract during the first half, when the yard bags large-scale offshore and onshore projects onfoot, its share price is expected to turnaround."
He prospected "Some expect that Hyundai will be able to pen the fifth additional drillship with Rowan within this year."