After long years of order freeze, the shipbuilding market is showing signs of thawing. The performance of Korea’s shipbuilding industry which underwent a long period of “order drought”, is showing improvement thanks to its painstaking restructuring efforts that led to a reduction in overall cost.
The newbuilding price is also hitting the bottom. As global environmental regulations are toughened and the commodity prices are rebounding, newbuilding orders are expected to recover from the latter half of this year.
Some analysts predicted that the bulker market would show the recovery first, followed by tanker and containership markets later.
Hyundai Heavy Industries chalked up sales of 39.31 trillion won last year, with its operating profit estimated at 1.64 trillion won. Although sales fell 14.9 percent year on year, the shipyard succeeded in rebounding from a 1.54-trillion-won loss in 2015.
It was the first time for the shipyard’s annual operating profit to exceed the 1-trillion-won level since 2012 (2.0 trillion won).
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