Daehan Shipbuilding has achieved its largest annual order volume since its founding by securing a large-scale order at the start of the second half of the year.

Daehan Shipbuilding announced on July 27 that it signed a construction contract for two Suezmax-class crude oil tankers with a new shipping company based in Europe.

Including this order, Daehan Shipbuilding’s cumulative order volume for this year has increased to a total of 17 vessels. The annual order amount reaches approximately 2.25 trillion won ($1.73 billion), which is the highest figure since the establishment of the company. The currently secured order backlog is a total of 36 vessels, meaning the company has secured work worth approximately 4.8 trillion won ($3.69 billion) on a delivery basis.

This achievement by Daehan Shipbuilding is based on the technological prowess and credibility it has built in the market for Suezmax-class crude oil tankers, which are high-value vessel types. In particular, analysts say the company is expanding its market dominance by diversifying its customer base through contracts with new shipping companies.

Profitability indicators also remain at the top level in the industry. Daehan Shipbuilding recorded consolidated sales of 308.3 billion won ($237.15 million) and an operating profit of 82.6 billion won ($63.54 million) in the first quarter of this year. The operating profit margin reached 26.8%.

An official from the shipbuilding industry evaluated, “Daehan Shipbuilding is achieving not only quantitative growth but also qualitative growth based on high ship prices,” and added, “Based on a solid order backlog, it is expected to maintain a stable sales structure for the next few years.”

Source: Business Korea