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Samsung Heavy Industries Lands Order for 5 LNG Carriers

Samsung Heavy Industries announced on Nov. 23 that it has recently won an order for five liquefied natural gas (LNG) carriers from a shipping company in Oceania. The total contract value amounted to 1,456.8 billion won.

The latest contract boosted the shipbuilder’s cumulative order intake for this year to US$9.2 billion, beyond its initial target of US$8.8 billion. This is the second year in a row that the company has exceeded its order-taking target. Its order receipt totaled US$12.2 billion last year, surpassing its target of US$9.1 billion.

Samsung Heavy Industries could meet its order-taking target this year thanks mainly to its expertise in LNG carriers. It boasts high-efficiency eco-friendly technologies such as an LNG fuel propulsion system, a re-liquefaction system and an energy reduction device (ESD) and smart ship technology of its own development. The company won orders for 35 LNG carriers this year, which represents more than two-thirds of the 45 ships it has won so far this year.
Industry insiders expect market demand for LNG carriers to continue as the volume of LNG transport is on the uptick. Clarkson Research, a British shipbuilding market analysis agency, has raised its forecast for LNG transport volume in 2030 from 580 million tons to 630 million tons. Shell also predicted the volume of LNG transport to reach 700 million tons in 2040.

“The large-scale orders we secured this year will lead to sales growth after 2023, lowering fixed costs and increasing the possibility of an earnings turnaround,” said a company official.
Source: Business Korea

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