Korean shipbuilders’ order backlogs dip 22% through Q3

Written by on November 23, 2020

Mixed order backlogs of South Korea’s prime 5 shipbuilders, led by Hyundai Heavy Industries Co., fell 22 % within the first 9 months of the 12 months from the top of final 12 months as a consequence of decreased new orders amid the coronavirus pandemic, business sources stated Tuesday.

However their good monetary well being will forestall them from raking in orders at decrease costs, in keeping with Han Younger-soo, an analyst at Samsung Securities Co.

The shipbuilders have 38 trillion gained ($34.2 billion) value of order backlogs as of end-September, which is able to preserve them busy for 1.three years, in contrast with 48.Eight trillion gained on the finish of 2019, the analyst stated.

The shipbuilders are Hyundai Heavy Industries Co., Hyundai Samho Heavy Industries Co., Hyundai Mipo Dockyard Co., Samsung Heavy Industries Co. and Daewoo Shipbuilding & Marine Engineering Co.

The 5 shipbuilders’ monetary well being is comparatively strong, as their web debt-to-equity ratio was 29.Eight % on the finish of the third quarter, he stated. The online debt-to-equity ratio, which is used to guage an organization’s monetary well being, is normally thought of optimum when it’s underneath 20 %.

The brand new orders by the shipbuilders have been rising, with their orders clinched throughout the previous two months estimated to account for 59 % of the full grabbed within the first 9 months.

In keeping with the info offered by world market researcher Clarkson Analysis Service, South Korean shipbuilders have order backlogs of 19.02 million compensated gross tons (CGTs), taking on 28 % of worldwide order backlogs of 67.34 million CGTs on the finish of October.

Chinese language shipbuilders’ order backlogs reached 24.31 million CGTs, or 36 % of the full, adopted by Japanese shipbuilders with 8.59 million CGTs.

International order backlogs have been on a downward path since 80.82 million CGTs in January. (Yonhap)

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