As yard competitions to win orders for drillship and offshore facilities are getting tougher comparing with limited demand, newbuilding prices for offshore and specialized ship segments to rise is restrained.
Analyst Park Mu-Hyun of E*Trade Securities said offshore drilling facility fabricators in Singapore, which had made relatively outstanding earnings due to firm demand and limited supply, saw declining profits.
He added Sembcorp, world leading offshore facility maker, had pointed out after Chinese shipyards participated the offshore market, competition had become ever more intensified.
Following after jack-up rig sector, Singaporean and Chinese shipyards are entering even in drillship market. Park concerned offshore/specialized ship market would no longer be named high-value market.
He explained that Korean shipyards could earn good margin by building drillships as there were not many competitive yards and man-hour was on the downturn through repetitive construction.
However, these high-value segments could not be able to make higher profits as in the past.
Park said Korean shipbuilding industries should diversify products contracted from increasing newbuilding demand for Eco commercial ship.