Tankers Keep Korean Yards Afloat

11 Sep 2015: Tanker orders help recoup some of the offshore losses. So far in 2015, Korea’s largest shipyards have mostly made the headlines not because of their shipbuilding prowess, but because of their disappointing financial results. In the second quarter of this year, South Korea’s Big Three, Hyundai Heavy Industries Co., Daewoo Shipbuilding & Marine Engineering Co. and Samsung Heavy Industries, racked up a combined operating loss of 4.75 trillion won (~US$4 billion). This was the worst quarter in the history of the Korean shipbuilding industry. These disappointing results came mostly from losses in the building of offshore structures. At the same time, the Korean won strengthened against the Japanese Yen and the Chinese Yuan, further raising the pressure on South Korean builders. However, amidst all this carnage, resurging tanker orders have provided a lifeline. Download here