HHI’s Orderbook Hit Hard in Q1

South Korean shipbuilding major Hyundai Heavy Industries Co. (HHI) saw a 42.2 % fall in new orders for the first quarter of 2016 when compared to the order intake from the corresponding period from last year.

The value of the new orders placed at the yard during January-March 2016 totaled in USD 1.74 billion, the company said on Monday.

The company’s shipbuilding business took a big blow with 63.2% lower orderbook reaching USD 234 million. HHI’s offshore and engineering business recorded USD 149 million worth of new orders, a 74.8 % drop year-on-year.

The fall in orders was the biggest in HHI’s offshore plant construction area, with only a USD 2 million worth of orders, a 97.6 percent fall from a year earlier.

A somewhat better situation was recorded with respect to orders for engines and machinery which amounted to USD 347 million, while orders for  construction equipment came to USD 415 million, down 42.6 percent and 22.3 percent, respectively.

The losing streak resumes from last year when HHI was faced with numerous delays in construction of offshore facilities and ships as the industry sector struggled with overcapacity and cost cutting measures.

The resulting price tag is KRW 600 billion (USD 523 million) in losses, Yonhap reports citing industry sources.

Hence, Hyundai Heavy has trimmed its appetites for this year setting its order target at USD 19.5 billion in 2016, against last year’s target of almost USD 23 billion.

World Maritime News Staff

Share this article

Follow World Maritime News

In Depth>

Events>

<< Dec 2019 >>
MTWTFSS
25 26 27 28 29 30 1
2 3 4 5 6 7 8
9 10 11 12 13 14 15
16 17 18 19 20 21 22
23 24 25 26 27 28 29
30 31 1 2 3 4 5

Offshore Energy Exhibition and Conference (OEEC) 2020

The three-day event includes an exhibition where an expected 600+ supply chain companies…

read more >

Maritime Reconnaissance and Surveillance Technology

As varied threats in the Mediterranean Sea continue to proliferate, the need to advance…

read more >

2nd GREENTECH IN SHIPPING GLOBAL FORUM

Forum you will find out from the regulators, government bodies and major ports’ representatives what the near…

read more >

7th Annual Arctic Exchange

Every year the Exchange invites delegates from across the globe to come together to listen to key senior management teams…

read more >