‘Samsung Heavy gains from rising ship prices’
The price of an LNG carrier that Samsung Heavy Industries won an order for last week has increased 1.7 percent from a week ago, said Hana Financial Investment on Dec. 26 maintaining a “buy” recommendation and 10,000 won (US$8.89) target price.
The average global price still remains at US$182 million for such carriers, but those of contracts inked by Korean shipbuilders have started rising. The Samsung affiliate has bagged orders for 18 out of 63 LNG carriers this year. As global freight volume increases, an average of 50 carriers will be ordered annually, and there is a demand to replace moss-type LNG ships as well, said analyst Park Mu-hyeon.
The three Korean shipbuilders can build up to combined 40 LNG carriers a year, and as demand is surpassing their capacity, the price will rise even further, he added.
Source: The Investor