HHI shipbuilding orders down in first half

Hyundai Heavy Industries’ (HHI) new shipbuilding orders for the first half have fallen 15% from the same period last year to $4.1 billion.

Across the group as a whole, new orders fell by 23% to $11.2 billionfrom $14.6 billion in the first half of 2013.

Six months into the year the Korean giant has secured 45.8% of its shipbuilding target for the year, with sales totalling $4.1 billion, LPG carrier orders make up over a quarter of the total, representing 24 of 48 vessels ordered. Amongst the group’s new orders are two LNG carriers for GasLog and two LPG carriers for BW LPG.

HHI’s backlog at the end of June stood at 163 vessels totalling $22.1 billion, with LNG carriers and LPG carriers accounting for the largest shares of the backlog with 21% and 14% respectively.

Growth is set to continue HHI’s offshore and engineering sector, where sales are forecast to grow 8% year on year for 2014, and new orders by 6.1%.

Despite a forecast drop in shipbuilding sales of 5.3% to KRW9.6 trillion and a 3.8% forecast drop in shipbuilding new orders to KRW9.1 trillion, HHI is expecting total growth of 9.4% in sales and 8% in new orders across the group.