DSME bags another LNG carrier deal on the back of EU approval of Hanwha takeover
South Korean shipbuilding major Daewoo Shipbuilding & Marine Engineering (DSME) has secured a construction order for an LNG carrier from an unidentified shipowner from Oceania.
The order is worth KRW 339.6 billion ($ 257 million), according to DSME’s stock exchange filing.
Under the contract, DSME is scheduled to deliver the LNG carrier by the end of August 2027.
This is the third contract revealed by the shipbuilder this year, and all three deals involve the construction of LNG carriers as South Korean shipbuilders continue to reap fruit from the growing demand for high-end ships featuring dual-fuel propulsion and advanced technology.
DMSE signed its first order in February 2023 with an undisclosed shipowner from Oceania for $248 million.
The South Korean shipbuilder won two more contracts for the construction of LNG carriers in March worth $517 million.
The latest order is being announced on the back of several approvals of DSME’s takeover by compatriot Hanwha Group. At the beginning of April, the European Union gave the deal the green light.
The EU’s nod follows similar approvals from Turkey, Vietnam, Britain, Japan, China and Singapore.
The acquisition is still pending a decision from South Korea before it can proceed further. South Korea’s Fair Trade Commission (FTC) is looking into the concerns that the takeover might pave the way for Hanwha to monopolize the construction of military vessels.
As reported earlier, in December 2022, the defense and energy conglomerate Hanwha Group signed a $1.5 billion deal for the acquisition of a controlling stake in compatriot shipbuilder Daewoo Shipbuilding and Marine Engineering.
The troubled shipbuilder has been controlled by the state-run Korea Development Bank (KDB) for over 20 years, with several attempts made over that period to find a buyer falling through.In line with the terms of the deal, Hanwha will take over 49.3 percent stake in the shipbuilder by acquiring over 104 million newly issued shares while KDB will retain 28.2 percent stake.