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Hyundai Heavy Industries Wins Order Worth 194 Billion Won to Build Two VLCCs

Hyundai Heavy Industries

Hyundai Heavy Industries Co. bagged this year’s first order to build two very large crude carriers (VLCCs) for Norway-based tanker owner DHT Holdings.

Hyundai Heavy Industries Co., South Korea’s largest shipbuilder, bagged this year’s first order to build two very large crude carriers (VLCCs) for Norway-based tanker owner DHT Holdings.

According to industry sources on January 31, DHT recently said in a regulatory filing that it sealed a contract with Hyundai Heavy Industries to receive two 319,000-ton VLCCs.

The company did not disclose financial terms, but given the current market price of about US$83 million for a VLCC and based on the current foreign exchange rate, the contract is estimated to be valued at roughly 194 billion won. The two VLCCs will be delivered by July and September of next year, respectively.

Previously, Hyundai Heavy Industries clinched an order to build a floating storage re-gasification unit (FSRU) with Norwegian liquefied natural gas (LNG) company Hoegh. However, the contract was reflected in the business results last year. So, the latest deal is the first order achieved this year.

DHT is one of HHI’s regular clients. Out of 21 carriers DHT currently owns, 16 were built by the Korean shipyard. Earlier, DHT ordered six VLCCs from with Hyundai Heavy Industries, with the most recent delivery for made January 16.

The Original Posted by Jung Min-hee/Business Korea

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