Daewoo Ship, STX Offshore Lead Advances Among Korean Shipyards on Orders
STX Offshore & Shipbuilding Co., the world’s fourth-largest shipyard, led advances among South Korean shipbuilders in Seoul trading on expectations that growing global trade will prompt more orders.
STX Offshore gained 8.1 percent to 28,550 won, the highest price since August 2008, at the 3 p.m. close of trade in Seoul. Daewoo Shipbuilding & Marine Engineering Co., the world’s second-largest shipyard, climbed 3.2 percent to 30,600 won after winning a $510 million contract.
Global trade is expected to expand 11 percent this year as consumers in the U.S. and Europe are buying more products from Asia. Evergreen Group and Neptune Orient Lines Ltd., Asia’s two largest container lines, have ordered 32 new ships from South Korean shipyards since June.
“Orders, especially for container ships and the offshore sector, have returned and will probably increase next year,” said Lee Jae Won, an analyst Tong Yang Securities Inc. in Seoul. “We’ve come to a point where we may have to start worrying about undercapacity.”
Daewoo today said it received an order to build an oil and gas platform from Chevron Corp. for $510 million. The structure will help the oil company increase gas production at an existing facility in Angola when delivered in the fourth quarter of 2013, the shipyard said in an e-mailed statement.
STX Offshore will build three ships that can each carry about 6,500 twenty-foot containers from Shipping Corp. of India Ltd., the Mint newspaper reported yesterday, citing two people familiar with the plan. The vessels will be worth $80.5 million each, according to the report.
Hyundai Heavy Industries Co., the world’s largest shipyard, advanced 2.2 percent to 388,000 won, the highest level since April 2008. Its unit, Hyundai Mipo Dockyard Co., climbed 3.1 percent to 197,000 won.
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