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Daewoo Shipbuilding Wins $250M Deal for 3 VLCCs

Daewoo Shipbuilding

Daewoo Shipbuilding & Marine Engineering (DSME) has clinched a US$250 million deal to build three very large crude carriers (VLCCs).

Daewoo Shipbuilding & Marine Engineering (DSME) has clinched a US$250 million deal with a Greece-based shipper to build three very large crude carriers (VLCCs).

Under the agreement with Maran Tankers Management, a unit of Greece’s largest shipper Angelicoussis Shipping Group, DSME will deliver three 318,000-ton VLCCs to the Greek company by 2018.

Angelicoussis is one of the major clients for DSME. The Greece-based company has ordered 92 ships from DSME since 1994. Last year, DSME clinched orders for two liquefied natural gas vessels and two VLCCs in June, followed by a floating storage regasification unit (LNG-FSRU) order worth a 700 billion won in December.

The latest deal came while the cash-strapped Korean shipbuilder, whose fate hangs on a meeting of its creditors on April 17 and 18, is struggling to tide over severe liquidity hurdles.

Late last month, the creditors announced a fresh rescue package worth 6.7 trillion won (US$6 billion) for the Korean shipbuilder suffering from cash shortage on the condition that all stakeholders agree to a debt-for-equity swap plan.

With the latest deal, Daewoo Shipbuilding has secured deals valued at a combined US$770 million to build two LNG ships and five VLCCs.

DSME is also expected to clinch another deal worth US$1.6 billion to build seven LNG-FSRUs for the US-based shipper Excelerate Energy later in April. It signed a letter of intent with Excelerate Energy in February this year. DSME also has been in negotiations with Angola’s state oil company Sonangol, which has been delaying payments for two completed drill ships.  If the negotiations go successfully, DSME will be able to receive 1 trillion won (US$900 million) from the African company.

The ailing Korean shipbuilder aims to clinch US$5.5 billion of deals this year while its creditors have a moderate goal of US$2 billion.

The Original Posted by Jung Min-hee/Business Korea

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