South Korean shipbuilding major Daewoo Shipbuilding and Marine Engineering (DSME) posted a KRW 5.13 trillion (USD 4.3 billion) worth loss for the full year of 2015.
Due to writing down more charges from offshore projects which are under construction, Daewoo Shipbuilding & Marine Engineering Company, the world’s second-biggest shipbuilder, has posted a record loss of US$4.3 billion in 2015, according to Bloomberg.
DSME’s sales fell by 23% when compared to the previous year standing at KRW 12.97 trillion and the company’s operating loss amounted to KRW 5.51 trillion, the company said in a stock exchange filing. www.marinelink.co...
Greek ship owner Chandris has exercised an option for another LNG carrier at Daewoo Shipbuilding & Marine Engineering (DSME). DSME said on 20 July that Chandris signed for another 173,400 m³ LNG carrier to service a joint venture the Greek company has with Japan's 'K' Line.
DSME wins order for two VLCCs from Angelicoussis Group
South Korean shipbuilder Daewoo Shipbuilding & Marine Engineering (DSME) has won an order for two 319,000-tonne VLCCs worth $99M each from the Angelicoussis Group. The tankers will be managed by Angelicoussis' subsidiary Maran Tankers Management.
Daewoo Shipbuilding & Marine Engineering Co., a Korea-based company that is a world leader in marine vessel construction, caught more than a few attending the Arctic Circle Assembly by surprise on Saturday when it unveiled what appeared to be multipage sales brochure for such a vessel to be available in 2016.
The revelation came about halfway through a program on “Business Across the Arctic.” Moderator Scott Borgerson opened the session by noting “shipping is 90 percent of world trade.”
Ye Weilong, vice president for China Ocean Shipping Company, followed with a presentation on the company’s experience in using the Northern Sea Route from China through the Bering Strait and along the Russian coast to ship freight in 2013.
“COSCO is optimistic about the future of the Arctic route,” said his PowerPoint presentation, which suggested COSCO would begin shipping that way regularly “in due course.”
Weilong spoke in Chinese without a translator, so what exactly he said was known only to the few Chinese speakers in the audience. Most in attendance had to read along with the PowerPoint and hope he was sticking to the script.
After Weilong finished his presentation, Borgerson asked Daewoo vice president Ohyig Kwon about shipping options for the Northern Sea Route, and Kwon played coy. Freight could be moved by ships escorted by tankers, he said, or by ships reinforced to break ice themselves.
Some older vessels could be upgraded to handle the ice for a good part of the summer shipping season as well, he said.
“I have many solutions,” Kwon said.
Then the microphone was passed to Anthony Hodge, the president of the International Council on Mining and Metals, who talked a bit about how all Arctic businesses need to do better at communicating with “civil society” if they hope to get public support for Arctic projects. Others followed and the discussion again shifted back to shipping, and the need for new Arctic ports if there is to be Arctic shipping.
Bjarni Benediktsson, Iceland’s minister of finance, was worried about the risks associated with building a new port to support Arctic shipping traffic that might or might not come.
A huge investment is going to be required, he said, “and if the project is unsuccessful, it’s going to be a disaster.”
Scott Minerd, global chief investment partner for Guggenheim Partners, agreed that to make something like ports happen, “the amount of capital that is going to have to go into the Arctic is massive.”
It was at about that point that Kwon told Borgerson he’d brought a video he wanted to show the audience. There was some confusion in finding it. Borgerson sent for a technician. Discussions stalled.
Hodge spent a minute or two pondering where the idea had arisen that there was an industry plot to fuel global warming to melt Arctic ice to open shipping lanes and gain access to mineral and petrochemical resources.
“This so-called paradox,” as he put it. “That wasn’t part of the discussion last year … Maybe we could set up a room next year to argue about that.”
There was laughter in the crowd. Then the giant-screen TV that takes up an entire wall in the Harpa convention hall flickered to life. It showed an artist’s rendition of an LNG tanker breaking through Arctic ice.
“Arctic LNG for 2016,” said a headline with the picture.
And it quickly became clear Kwon had brought more than just an artist rendition. The PowerPoint presentation showed only part of what appeared to be a 20-page sales brochure. There were architectural drawings for the ship, which has a strange bow that looks almost like it’s designed to ride up on ice, and photos of models of the design going through tests in tanks filled with simulated ice flows.
Kwon described the ship as having an “ice-absorbing bow.” He predicted it could be used on the Northern Sea Route from July to November, possibly July to December.
“Any environment, we can be the solution,” Kwon said.
Borgerson was clearly caught off guard by the presentation. Borgerson had planned to close the session by asking panelists if they were bullish or bearish on the prospects for Arctic development, but then added that he wouldn’t ask Kwon because he’d suddenly made it pretty clear what he and his company thought.
The rest of the panelists were with Kwon in being bullish on the region, though they had yet to put any skin in the game a la Daewoo, which had clearly spent money on research and development long before coming to this assembly put together by Iceland President Olafur Ragnar Grimson and Alice Rogoff, owner of Alaska Dispatch News.
There are about 1,300 in attendance at the event this year, representing more than 30 countries.
“This is the greatest (development) opportunity since the end of the Ice Age,” Minerd said, though many of the countries presenting at the assembly have mainly pitched what they can sell those who want to work in or witness the Arctic.
The French were earlier Saturday pushing their luxury cruise through the Northwest Passage. The video from Pontant certainly made the trip look interesting, exciting and not at all cold.
Everyone here seems in agreement that the Arctic is warming, and thus in many ways becoming more attractive to life, business and shipping.
Kwon offered no hints on what Daewoo saw as the market for its new tanker. China has been showing increasing interest in natural gas to fuel some of the coal-fired power plants that now make the nation’s air among the worst in the world.
In the past, there has also been talk of shipping now stranded Alaska North Slope gas to market by tankers instead of by pipeline. Norway has large supplies of LNG and already ships to the U.S. and Spain. That gas could be moved east via the Northern Sea Route to China or Japan.
COSCO cut nine days off the shipping time from Europe to Asia when it used the Northern Sea Route in 2103 and saved 250 tons of fuel in the process, according to Weilong’s presentation. Both time and fuel savings mean big reductions in shipping costs, which is what makes the route very attractive.
Source: Alaska Dispatch
Daewoo Shipbuilding & Marine Engineering has won orders for three ultra-large containerships from an European shipowner, IHS Maritime reports.
South Korea's third biggest shipbuilder disclosed in a Korea Exchange filing that the ships would be delivered by 15 February 2017.
DSME would disclose neither the ship size nor the customer's identity when contacted by IHS Maritime.
However, the total contract value is KRW490.1Bn ($466.429M), working out to $155.5M per ship. That is the price of an ultra-large container ship in today's market.
DSME is currently building five 18,400teu ships for Bank of Communications Leasing which has a long-term charter agreement with Mediterranean Shipping. These ships were ordered for $140.5M each. The latter also has three 19,000teu ships under construction at DSME.
DSME said that the order it sealed today would take its year-to-date sales to KRW15.3Trn. The shipbuilder has been outperforming its bigger compatriots Hyundai HI and Samsung HI by winning orders for LNG carriers and giant container ships.
Daewoo Shipbuilding, SKT agree to develop 'smart ship'
Daewoo Shipbuilding & Marine Engineering (DSME), the world's second-largest shipbuilder, and Korea's top mobile carrier, SK Telecom (SKT), have teamed up to develop ICT-based "smart ships." In a statement Tuesday, SKT said it signed a memorandum of understanding with DSME to cooperate in a research and development (R&D) venture to build the high-tech, next-generation ships. The vessel will be equipped with a global telecommunication network based on navigation and monitoring systems, while all the on-board services will be converged onto a single network. Under the alliance, SKT will provide ICT guidelines, optimized blueprints and R&D resources, while DSME will share the needs of ship owners and smart ship-related research achievements. "By sharing our ICT technology and successfully developing a smart ship, we want to upgrade DSME's competiveness as well as the Korean shipbuilding industry," said Lee Myung-geun, head of SKT's corporate business division. Their main task will be building a multi-connected system in areas of ship-monitoring, automation and unmanned services, as well as safety and security. Eom Hang-seop, managing director of strategic planning at DSME, said that the shipbuilder was already in the process of developing the smart ship. "We have been cooperating with overseas system developers and classification societies since 2010. Through the alliance with SKT, we believe that we can solve the wired and wireless communication issues now." Priority will be given to produce visible results within this year. In a bid to make a mark in the newly emerging technology market, the two will find "quick-win" areas, where such technologies as Internet Of Tings (IOT), GPS and LTE can be quickly commercialized. The alliance is the second such cooperative venture. Previously the two had agreed to construct an LET-based Smart Shipyard at Okpo, South Gyeongsang Province, in 2011. An embedded LTE smart grid enabled the shipbuilder to do quality control and track down the shipping of materials in real time through smartphones and tablet PCs. Source : The KoreaTimes
South Korean shipbuilder Daewoo Shipbuilding & Marine Engineering has won in a tendering process and was awarded the contract for 16 ARC7-class LNG tankers for NOVATEK-led Yamal LNG project, ITAR-TASS reported. There were 7 bidders participating in the tender. JSC Yamal LNG and DSME signed an agreement for the construction, launching, equipment supply, outfitting and delivery of up to 16 tankers. The agreement terms establish the preliminary cost / schedule of completion and delivery. The agreement also provides for transfer of rights to finance the newbuilds construction to third parties, those picked by JSC Yamal LNG. Under the agreement, the South Korean shipyard is also committed to hand over to a Russian shipyard the necessary knowledge for construction of gas carriers, including the transfer of design and other technical documentation, training of Russian engineers and workers and subcontracting local shipbuilders to execute part of the contract.
ARC7 LNG tankers are designed for year-round transportation of liquefied natural gas produced in the "Yamal LNG" project, to operate in the severe Arctic conditions (-50º C) with ice thickness of more than 2.1 meters.
The cost of one LNG carrier is estimated at $ 220-230 million, thus the total project cost will make up nearly $ 3.5 billion, the Russian news agency said.
Daewoo Shipbuilding wins US$411m order for two LNG carriers
Daewoo Shipbuilding & Marine Engineering Co Ltd said on Monday it had won a 469.6 billion Korean won (S$522 million) order to build two liquefied natural gas (LNG) carriers from Angelicoussis Shipping Group Ltd. The South Korean shipbuilder said in a statement the vessels are slated to be completed by the second half of 2016, and operated by Maran Gas Maritime Inc, a gas shipping unit of Angelicoussis Group. Source : Reuters
DSME bags $3bn four drillship order from Transocean
As SeaTradeAsia reports, Daewoo Shipbuilding & Marine Engineering (DSME) bagged a bumper $3bn order to build four new ultra-deepwater drillships for US-based Transocean.
DSME's facility in Okpo, South Korea will deliver the first unit in mid-2015 and the remaining three drillships will be delivered from the shipyard at approximately six-month intervals thereafter.
The four drillships are designed to operate in water depths of up to 12,000 feet and drill wells to 40,000 feet.
Transocean has inked a 10-year contract to charter the four drillships to oil major Shell.