Hyundai Heavy Secures Refund Guarantee for Tanker Duo

South Korean shipbuilder Hyundai Heavy Industries has secured a refund guarantee in connection to a recent order to construct two oil tankers for a Greek shipowner, Yonhap News Agency reported industry sources as saying.

The refund guarantee is provided by a group of banks led by KEB-Hana Bank. These guarantees allow shipowners to reclaim the money already paid as part of a contract in case shipbuilders default.

Yonhap did not reveal the name of the shipowner, however, according to data published by VesselsValue, Enterprises Shipping and Trading placed an order for two 158,000 dwt tankers with Hyundai Heavy in late August.

Although the price of the vessels was not disclosed, VesselsValue said that the market value of each of the ships stands at USD 58 million. The new ECO Suezmaxes are scheduled to join their owner in 2018.

It is becoming increasingly harder for South Korean shipbuilders to secure refund guarantees as banks are reluctant to expose themselves to the risks within the country’s struggling shipbuilding industry, which saw the lowest level of orders in the first half of 2016.

South Korea’s Big Three – Hyundai Heavy Industries, Samsung Heavy Industries Co. and Daewoo Shipbuilding & Marine Engineering Co. – accumulated a combined operating loss of USD 7.4 billion last year alone, with DSME responsible for nearly two thirds of the total loss.

As a response to the global slowdown, South Korean government recently launched a corporate restructuring plan, targeting its financial troubled industries, including its shipping and shipbuilding sectors.

World Maritime News Staff

Share this article

Follow World Maritime News

In Depth>

Events>

<< Oct 2019 >>
MTWTFSS
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

CruiseConnect Global 2019

Attend CrewConnect Global and stay on for the CruiseConnect Summit to take part in an industry-wide conversation focused…

read more >

CEDA Dredging Days 2019

CEDA Dredging Days programme will follow its successful format of contributed peer-reviewed…

read more >

Offshore Wind Europe 2019

#OWEU19 is a meeting place for governments, developers and suppliers to grow the confidence in wind power. Perfect to grow your business by securing new customers, meeting officials and industry heads.

read more >

6th Mozambique Gas Summit & Exhibit

This year’s edition will have a revamped programme for attendees.

read more >