South Korea: STX Accelerates Its Order Receipt Activities for 2012

STX Offshore & Shipbuilding is accelerating its order receipt activities for 2012 by successfully receiving a number of consecutive orders. The company announced that it received orders for two 170,200m3 class LNG carriers and six 50.000 DWT class tankers from Sovcomflot and John Fredriksen Group, respectively.

The orders are totally more than USD 600 million, with the ordered price being USD 200 million per LNG carrier and USD 35 million. Of the six LNG carriers contracted by Sovcomflot, two were ordered as part of the first shipment, along with one optional LNG carrier, with a further two belonging to the second shipment. In the case of the 50,000 DWT class tankers, STX Offshore & Shipbuilding expects additional orders since the company concluded an option contract for four tankers of the same class.

With these orders paving the way, along with a number of LOIs (Letters of Intent) and option contracts amounting to USD 6.5 billion as of the end of 2011, the company is expected to continue its order receipt rally under a difficult market situation.

This 170,200m3 class LNG carrier, which introduced an energy saving propelling system capable of minimizing the loss of vaporized gas, can save more than 5% of fuel compared to existing electrically driven LNG carriers. The two LNG carriers will be delivered in the fourth quarter of 2014 and the first quarter of 2015, respectively.

Six tankers will be delivered in order by the end of 2013. All the LNG carriers and tankers will be built at the Jinhae Shipyard of STX Offshore & Shipbuilding.

In addition, beginning with the contract for the construction of one 155,000DWT class DP2 shuttle tanker (Dynamic Positioning System 2 Shuttle Tanker) concluded with a Greek shipping company on January 31th, the company received orders for six medium sized bulkers in February, recording new order receipts for 16 ships totaling USD 1 billion heretofore.

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Source: STX Offshore & Shipbuilding, April 19, 2012