Korean Big3 shipbuilders' total amount of new order stands at $29.5bn, lower than total revenue of $38.5bn and market suggested that Hyundai Heavy Industries, Samsung Heavy Industries and Daewoo Shipbuilding & Marine Engineering will keep offering lower prices in 2013.
Analyst Park Min of Korea Investment & Securities said "As shipbuilders' orderbook gets shrinking, they will see profit declines as well." and concerned "Normally, newbuilding prices make a rebound after filling up the orderbook. Therefore, lower newbuilding prices and poor profits will continue to bother shipyards."
As for Big3's new order for 2013, he projected that the Korean major shipbuilders will see overall $11bn orders for offshore production facilities and $11bn of drilling units from offshore plant segment. In case of LNG carrier, due to postponement of gas field development projects and charter contracts, there will be only 20 orders, totalling $4bn.
Big3's orders for boxship is expected to grow to $3.5bn from $1.2bn in this year.