Hyundai Mipo Dockyard of Korea is said that the performance of Vietnam’s Hyundai-Vinashin Shipyard (HVS) and orders to be placed by Royal Dutch Shell might be crucial factors for its stock price.
Choi Won-Kyung, an analyst at Kiwoom Securities of Korea, said that the factor behind the operating loss at the fourth quarter of last year was the bigger deficit of Vietnam’s HVS and analyzed that there is still a possibility of having a poor performance on consolidated basis till the second quarter of this year.
Accordingly, the annual revenue of head office is expected to be KRW 3.6trn ($3.3bn) with KRW 3.9trn-4trn of turnover (on consolidated basis) and 1-2% of operating margin.
Meanwhile, a negotiation is currently going on with Shell over exercising an option of 40 MR product carriers (PC) and it is said that half these PCs are expected to be ordered within this year.
Hyundai Mipo has contracted overall seven PCs worth around $230m year-to-date. Choi said the shipyard is now currently in competition with compatriot Hanjin Heavy Industries & Construction and Daewoo Shipbuilding & Marine Engineering for three diving support vessels totalling about $45m in total, which is predicted to be firmed up by the end of this month.