Clean energy vessels propel Yangzijiang Shipbuilding’s soaring orderbook to $14.70 bln

In the midst of a thriving shipbuilding upcycle fueled by the global decarbonization drive, Singapore-listed shipbuilder Yangzijiang Shipbuilding has secured a staggering $5.76 billion worth of orders for 72 vessels in the first half of 2023.

Image credit: Yangzijiang Shipbuilding

The strong demand for clean energy vessels has been a significant driver of Yangzijiang’s growth. Among these orders are 10 units of LNG dual-fuel containerships and 10 units of methanol dual-fuel containerships.

Among Yangzijiang’s clients is Danish container shipping heavyweight A.P. Moller – Maersk (Maersk), which placed an order for six mid-sized container vessels with the yard in June this year.

 The six 9,000 TEU vessels will all have dual-fuel engines able to operate on green methanol and fuel oil, and are slated for delivery in 2026 and 2027.

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The shipbuilding major ended the period with an all-time high outstanding order book of $14.70 billion for 181 vessels, with clean energy vessel orders making up 56% of the total value, compared to the 23% recorded 12 months ago.

Yangzijiang’s net profit soared to 1.73 billion yuan (approximately US$241.4 million), marking a significant increase from CNY 1.37 billion recorded in the same period the previous year.

Buoyed by the IMO’s increased clarity on the industry’s green direction, Yangzijiang is determined to fortify its green technology capabilities.

“1H2023 has been a successful half for us, both with respect to financial performance and new order wins. With 181 vessels to be delivered, we are looking at multiple ways of improving our operational efficiency and overall project management,” Ren Letian, Executive Chairman and CEO, Yangzijiang Shipbuilding (Holdings) Ltd, said.

“Now with concrete targets and milestones laid out by the IMO, we will no doubt see an accelerated pace of fleet decarbonisation among global ship liners. Equipped with green technological know-how, Yangzijiang will continue to benefit from this paramount transition where we expect sustained demand for clean fuel vessels for the years ahead.”

With the intention of staying at the forefront of the industry, the group is set to embark on various initiatives to further enhance its research and development capabilities. This strategic move will involve targeted recruitment and increased investment in technology, ensuring Yangzijiang remains well-positioned for continuous growth in the clean energy vessel segment.

Looking at 2H2023, the shipyard said that the global shipping market could potentially enter a stronger half of the year premised on recovery in consumer spending and normalization of spending patterns, reduced inventories, and wage growth.