BREAKING: Samsung Heavy Industries Co. has just announced a monumental contract valued at nearly $1.4 billion for the construction of seven container carriers. This deal, one of the largest in the company’s history, has already boosted its shares significantly.
The order, confirmed in a regulatory filing earlier today, comes from an Asia-based shipowner and is worth approximately 2 trillion won. This contract represents about 19% of Samsung Heavy’s most recent annual sales, underscoring its massive impact on the shipbuilder’s financial outlook. The vessels are set for delivery between late 2025 and late 2029, marking a significant addition to the company’s order book.
With this fresh contract, Samsung Heavy has now secured a total of $6.9 billion in orders this year alone, achieving 70.4% of its full-year target of $9.8 billion. The company has reported a total of 39 vessels ordered so far, including a diverse range of carriers such as liquefied natural gas vessels and shuttle tankers. The cumulative order backlog now stands at 132 vessels, valued at an impressive $28.2 billion, ensuring robust production visibility for years to come.
Investor sentiment surged following the announcement, with Samsung Heavy’s shares closing 4.3% higher at 26,450 won. Market analysts are increasingly optimistic, raising target prices for the shipbuilder due to improving order quality and signs of recovery in high-end offshore projects.
The momentum for Samsung Heavy continues to build. Recently, the company secured a contract from a North American client for two crude carriers worth a combined 290 billion won. Additionally, in July, Samsung Heavy received a preliminary agreement to construct a floating liquefied natural gas (FLNG) production unit valued at around $650 million. This type of unit is vital for extracting and liquefying natural gas from deep-sea fields, showcasing the company’s capability in delivering complex offshore structures.
Samsung Heavy’s positive trajectory is reflected in its preliminary third-quarter results, which indicate a revenue rise of over 13% from the previous year, with operating profit nearly doubling. This growth is driven by stronger ship prices and an increasing share of high-value vessels and offshore units.
As the global shipbuilding cycle appears to be gaining momentum, all eyes are on Samsung Heavy Industries. The combination of significant new orders and improved financial performance signals a bright future for the company, making it a key player in the maritime industry.
Stay tuned for further updates on this developing story and its implications for the maritime sector and global shipping markets.
