April 24, 2024

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[THE INVESTOR] Daewoo Shipbuilding and Marine Engineering said on March 24 that its portfolio will be mostly made up of LNG carriers and other specialty vessels, with the company expecting a business turnaround this year.

Its rosy outlook came a day after the country’s state-run creditors of the shipyard, the world’s largest by order backlog, announced a fresh rescue package worth 6.7 trillion won (US$5.98 billion), but only if all stakeholders agree to a painful debt-equity swap plan.

The huge rescue measures, proposed by the state-run Korea Development Bank and Export-Import Bank of Korea, are the second round of bailout for the shipbuilder that has been suffering severe liquidity problems over heavy losses from offshore projects.

“Starting this year, a huge chunk of our portfolio will consists of LNG ships and other vessels that we specialize in. Most of loss-making offshore facilities projects have been completed,” said the company in a statement.

By Alex Lee and newswires (alexlee@heraldcorp.com)