Daewoo Ship Wins $1.96 Billion Order for Fixed Platforms

Daewoo Shipbuilding & Marine Engineering Co. (042660) won a 2.22 trillion won ($1.96 billion) order to build five fixed platforms as rising demand for energy products helps South Korean shipyards weather a slowdown in vessel orders.

The units will be delivered to a customer in Africa by April 2016, the Seoul-based shipbuilder said in a filing today. It didn’t elaborate.

The company’s shares rose the most since Aug. 9 in Seoul trading after the order, which followed the shipbuilder’s first contract for a floating liquefied natural gas plant in June. In total, Daewoo expects to boost orders for offshore equipment 34 percent this year to $8.5 billion, it said in April.

The shipbuilder closed up 1.8 percent at 27,650 won. Hyundai Heavy Industries Co., the world’s biggest shipbuilder, climbed 2.2 percent.

Daewoo had booked a total of $5.85 billion of new orders this year as of the end of June, according to a statement on its website. Offshore accounted for 70 percent of orders in the period, compared with 44 percent for the whole of last year.

To contact the reporter on this story: Sungwoo Park in Seoul at spark47@bloomberg.net

To contact the editor responsible for this story: Neil Denslow at ndenslow@bloomberg.net

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