April 19, 2024

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[THE INVESTOR] South Korea’s top three shipbuilders have lost more in canceled contracts than new orders in 2016, data showed on Jan. 2.

According to industry sources, the three shipbuilders -- Daewoo Shipbuilding and Marine Engineering, Hyundai Heavy Industries and Samsung Heavy Industries -- won contracts worth US$6.47 billion last year, while the value of canceled orders came to US$8.64 billion last year.

Much of Samsung Heavy’s US$5.36 billion in canceled contracts was caused by the difficulties faced by Australia’s Browse LNG project. Samsung Heavy had been contracted to supply three floating liquefied natural gas facilities for the project, but the order was canceled after some of the investors pulled out.

HHI and DSME also saw major contracts canceled due to low oil prices.

By Choi He-suk (cheesuk@heraldcorp.com)