Samsung Heavy Industries Co., one of South Korea’s top three shipbuilders, has secured a landmark order for seven container carriers worth nearly 2 trillion won ($1.4 billion), giving the yard one of its largest single contracts and sending its shares higher on Thursday.
The company said in a regulatory filing that an Asia-based shipowner on Wednesday placed the order, valued at about 1.92 trillion won, equivalent to roughly 19% of the company’s most recent annual sales.
The vessels are scheduled for delivery between late 2025 and late 2029.
With the new contract, Samsung Heavy has booked a total of $6.9 billion in orders so far this year, achieving 70.4% of its full-year target of $9.8 billion, the company said.
It has secured orders for 39 vessels year-to-date, including liquefied natural gas carriers, shuttle tankers, container ships, ethane carriers and crude tankers, along with a preliminary contract for offshore production facilities.
The company’s cumulative order backlog now stands at 132 vessels worth $28.2 billion, giving the shipbuilder several years of production visibility, it said.
INVESTORS CHEER THE ORDER
The contract propelled Samsung Heavy’s shares upward, as investors viewed the deal as fresh evidence that the global shipbuilding cycle may be turning upward.
The stock closed 4.3% higher at 26,450 won on Thursday.
Korean brokerages have begun raising the shipbuilder’s target prices, citing improving order quality, firmer vessel pricing and signs of recovery in high-end offshore projects.
The latest order adds to Samsung Heavy’s recent momentum. Recently, the company secured a separate contract from a North American customer for two crude carriers valued at a combined 290 billion won.
In offshore, the yard won a preliminary agreement to build a floating liquefied natural gas (FLNG) production unit worth about $650 million in July and has received a letter of award from a US energy company, raising hopes that a full contract could follow.
FLNG units are a massive offshore structure that extracts, liquefies and transfers natural gas from subsea fields. Samsung Heavy has built some of the world’s most complex FLNG units.
Samsung Heavy’s broader business outlook has also brightened.
Its preliminary third-quarter results showed revenue rising more than 13% from a year earlier and operating profit nearly doubling, supported by stronger ship prices and a growing share of high-value vessels and offshore units.
