Samsung Heavy Industries Surpasses Annual Commercial Vessel Order Target Ahead of Schedule
Key Takeaways
- •Samsung Heavy Industries secured 34 commercial vessel orders worth $5.8 billion in 2024, exceeding its initial commercial ship target of $5.7 billion by 2%.
- •The company's latest order comprises two crude oil carriers from a European shipping company valued at 268 billion won, with delivery scheduled by August 2029.
- •LNG carriers represent the largest segment of orders at 14 vessels, reflecting robust demand driven by the global energy transition and growing seaborne LNG trade.
- •Including two FLNG offshore facilities, total cumulative orders across all sectors reached $10.2 billion, or 73% of the full annual target of $13.9 billion.
- •Delivery slots extending into the late 2020s highlight capacity constraints at major Korean shipyards following a sustained multi-year order boom that began around 2021.
Samsung Heavy Industries Surpasses Annual Commercial Vessel Order Target Ahead of Schedule
Samsung Heavy Industries has reached its commercial ship order target for the year ahead of schedule, sustaining a strong order run driven by high value-added vessels. Despite prevailing uncertainty in the global order market, the South Korean shipbuilder is accelerating its business normalization by securing stable order volumes centered on LNG carriers and crude oil carriers.
On August 3, Samsung Heavy Industries disclosed that it had secured an order for two crude oil carriers from a European shipping company, valued at a total of 268 billion won ($191.43 million). The contracted vessels are scheduled for sequential delivery by August 2029. Delivery slots extending into the late 2020s reflect how full orderbooks at major Korean shipyards have become following a multi-year order boom that began around 2021, limiting near-term capacity availability.
This latest contract brings Samsung Heavy Industries' cumulative commercial ship orders for the year to 34 vessels worth $5.8 billion, exceeding the initial commercial ship order target of $5.7 billion by 2%.
By vessel type, gas carriers account for the dominant share of orders, reflecting strong demand amid the global energy transition. The breakdown includes 14 LNG carriers (one of which is an LNG-FSRU), 2 ethane carriers, and 4 gas carriers. Rounding out the portfolio are 2 container ships and 12 crude oil carriers, including the two most recently ordered vessels. The heavy weighting toward LNG carriers aligns with broader industry trends, as South Korea's Big Three shipyards—Samsung Heavy Industries, HD Hyundai Heavy Industries, and Hanwha Ocean—have collectively dominated the global market for high-value LNG carrier construction, benefiting from growing seaborne LNG trade driven by energy security concerns and the shift away from pipeline gas in several regions.
Overall order performance, which encompasses the offshore plant sector, is also progressing steadily. Including 2 FLNG (Floating Liquefied Natural Gas) production facilities in the offshore sector, the total cumulative order amount for the year reaches $10.2 billion. This figure represents 73% of the annual total order target of $13.9 billion. Depending on additional orders secured in the second half of the year, the company remains well positioned to achieve its overall target.
A Samsung Heavy Industries official stated, "As the solid ordering trend continued, centered on LNG carriers and crude oil carriers, we were able to quickly fulfill the commercial ship sector guidance." The official added, "Moving forward, we will focus more on profitability-oriented selective orders while operating a global operation system to flexibly respond to changes in market demand."