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Samsung Heavy on course to hit 2017 order target

June 8, 2017 - 15:53 By Shim Woo-hyun

Shipbuilder Samsung Heavy Industries is one step closer to achieving its annual order target, as the company has reached an agreement to sign more contracts later this year.

SHI has signed a letter of intent with Seaone in mid-May, to build 12 articulated tug barges that will carry compressed gas, the company said Thursday. The contract is expected to be worth some $1.5 billion.


Seaone is likely to make a final decision in November, according to industry insiders.

Details of the on-going negotiations remain undisclosed by the company. “The contract has not been signed yet, and it is difficult to comment at this moment,” SHI’s spokesperson said.

If SHI wins the contract offered by Seaone, the company is to post accumulated contracts worth $6.2 billion this year, close to the company’s annual target set at $6.5 billion. SHI has landed contracts worth $4.8 billion in total so far this year, including the latest $2.5 billion deal clinched to build an offshore facility.

SHI is also one of the contractors that are engaged in the bidding for Johan Castberg project off Norway, which is said to be worth some $1 billion to $1.5 billion in total. The result is forecast to come out between later this year and early next year, according to SHI’s spokesperson.

Korea Investment and Securities assessed that SHI is recovering as demands for liquefied natural gas carriers and facilities increase worldwide.

In 2016, SHI’s order target was set at $5.3 billion, but it achieved just one-tenth of the target, $520 million.

By Shim Woo-hyun (