BREAKING: Samsung Heavy Industries Co. has just announced a monumental deal that could reshape the global shipping landscape. The South Korean shipbuilder secured an order for seven container carriers valued at nearly $1.4 billion, marking one of its largest contracts to date and sending shares soaring by 4.3% on Thursday.
According to a regulatory filing, an Asia-based shipowner placed the order on Wednesday, with a total contract value of approximately 1.92 trillion won, which equates to about 19% of Samsung Heavy’s most recent annual sales. The vessels are set for delivery between late 2025 and late 2029, highlighting the company’s significant role in the future of maritime transport.
This latest contract adds to Samsung Heavy’s impressive performance this year, with total orders now reaching $6.9 billion, achieving 70.4% of its annual target of $9.8 billion. The company has already secured orders for 39 vessels in 2023, including liquefied natural gas carriers, shuttle tankers, and crude tankers, alongside a preliminary contract for offshore production facilities.
Investors are reacting positively to the news, viewing it as a strong indicator that the global shipbuilding cycle is on the upswing. Shares closed at 26,450 won, a significant increase reflecting renewed optimism in the sector.
Korean brokerages have begun revising their target prices for Samsung Heavy, attributing the adjustments to improved order quality and rising vessel prices. This momentum is underpinned by Samsung Heavy’s recent contract with a North American customer for two crude carriers, valued at a combined 290 billion won. Furthermore, a preliminary agreement for a floating liquefied natural gas (FLNG) production unit worth about $650 million was secured in July, with hopes of a full contract soon to follow.
Samsung Heavy has built some of the world’s most complex FLNG units, capable of extracting, liquefying, and transferring natural gas from subsea fields. The company’s cumulative order backlog now stands at 132 vessels worth $28.2 billion, providing several years of production visibility.
The outlook for Samsung Heavy is brightening, with preliminary third-quarter results showing revenue growth of over 13% compared to the previous year, and operating profit nearly doubling. This growth is fueled by stronger ship prices and an increased share of high-value vessels and offshore units.
As Samsung Heavy continues to secure significant contracts, the global shipbuilding industry watches closely. Stakeholders and investors eagerly anticipate the company’s next moves as it solidifies its position as a leader in maritime engineering and construction.
Stay tuned for further updates on this developing story as more information becomes available.
