Home' Ships and Shipping : September 2009 Contents NEWS -- ASIA
September 2009 SHIPS AND SHIPPING
Three of the world's largest shipbuilders, Hyundai Heavy
Industries, Daewoo Shipbuilding & Marine Engineering and
Samsung Heavy Industries, may be able to post higher profits
for the quarter as partial payments on vessel orders increase,
Bloomberg reported on August 4.
According to its estimates, Bloomberg said that the three yards
could post a US$770 million profit, compared with the US$610
million profits they posted in the previous quarter.
Analyst at LIG Investment & Securities, Kim Hyun, told the
paper that the delays in delivery schedules had affected the net
figures of builders' profits for the quarter.
However, ship owners are starting to take deliveries of vessels,
a sign that they think the market it showing recovery. Bulk
freight rates have tripled this year and in June, weekly container
rates increased for the first time since April 2008, the Howe
Robinson Container Index showed.
"The dark shadows that hovered over the ship industry have
started to clear up," Cho In Karp, analyst at Good Morning
Shinhan Securities, Korea, told Bloomberg. "Ship financing
appears to be recovering."
Korean builders could post higher profits amidst signs of recovery
Better days on the horizon for Hyundai
Jurong Shipyard, Singapore, has secured a US$110 million
contract to convert a VLCC to an FPSO.
The contract for the conversion of 'Ohdoh' (ex 'Todoh') will
be for MODEC Offshore Production Systems, Singapore, and will
involve detailed engineering, installation and integration of 18
topside modules, as well as the installation of external turret and
power generation, accommodation upgrading and extensive
piping and electrical cabling works.
After its conversion, the vessel will be renamed 'FPSO Kwame
Nkrumah MV 21'.
The FPSO will be part of the Tullow Ghana Phase 1
development plan and is due for delivery in the first quarter of
The vessel will be installed in approximately 1,100-metre
water depth in the Jubilee Field offshore Ghana, one of
the largest oil fields discovered offshore West Africa in the past
The 'FPSO Kwame Nkrumah MV21' will be capable of
processing more than 120,000 barrels of oil per day, injecting
more than 230,000 barrels of water per day, 160MMscfd of
production gas and with a storage capacity of 1,600,000 barrels of
oil. It is designed to remain on the field for up to 20 years
without dry docking.
Jurong Shipyard secures US$110 million conversion contract
'Todoh' will be named 'FPSO Kwame Nkrumah MV 21' after conversion
Western Shenzhen Port, comprising Shekou Container
Terminals (SCT), Chiwan Container Terminal (CCT) and
Dongguan Orient Container, have teamed up to establish the
Dongguan Outside Depot.
The new Shatian District depot, located next to manufacturers in
Dongguan in the Pearl River Delta region, will conveniently enable
manufacturers to collect empty containers for export via SCT/CCT.
"Compared with existing empty pick-up at Shenzhen, this
new service will effectively reduce cost of haulage from factory to
gateway, shortening the transportation time and distance which
greatly reduces emission of carbon dioxide," a statement from
The area comprises 26,000 square metres for container pick-up
and repair services. Its establishment is part of efforts to expand
the service network of Western Shenzhen Port.
China: Dongguan introduces speed boxing
Shekou Terminal 3
Japan's Mitsui OSK Lines (MOL),
boasting the world's biggest merchant
fleet, has lowered its operating
profit forecast by 25 percent for the
year ending March 31, from the
previously announced US$843 million
to US$527 million.
The company posted a first-quarter loss
of US$137 million as sales fell 41 percent to
US$3.1 billion, hurt by falling shipping rates
and weakening demand for cargo vessels.
The Baltic Dry Index fell 72 percent in
last quarter. The index averaged 2,714
points in the three months ended June 30,
compared with 9,751 points in the same
three-month period a year earlier.
"The company expects deterioration of
freight rates, stagnation of cargo trade
mainly for containerships, and a delay in
the recovery of completed car exports,
along with a substantial rise in bunker
prices," said a statement issued by MOL.
"In the third and fourth quarters, the
company anticipates that the external
conditions will not reverse." TRACEY JIA
MOL issues profit warning, lowers annual estimate by 25 percent
'MOL Creation' in the Mitsui OSK Lines livery
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