Korea's Big 3 shipbuilders on track to meet annual targets as merchant vessel orders surpass goals

South Korea's major shipbuilders have already surpassed their merchant vessel order targets this year, putting them on course to meet their full-year goals. The strong performance reflects a strategy of selectively pursuing eco-friendly, high-value-added vessels during the industry's supercycle, while also delivering results in new growth areas.

According to industry sources, HD Hyundai Heavy Industries booked $15.97 billion in cumulative orders from January through July, an 88.83 percent increase from $8.46 billion during the same period last year.

By segment, the shipbuilding division accounted for the largest share with $13.05 billion in orders, up 124.67 percent from $5.81 billion a year earlier. The offshore and plant division secured $113 million in orders, a 175.61 percent increase from $41 million in the same period last year. The engine and machinery division posted $2.81 billion, up 7.67 percent year on year.

Merchant vessel orders were particularly strong at $12.69 billion, surpassing the company's annual merchant vessel target of $11.47 billion. The overall shipbuilding division's order achievement rate stood at 90.1 percent. The engine and machinery division also reached 105 percent of its annual order target. However, achievement rates for the naval vessel and offshore divisions were limited to 12.1 percent and 3.5 percent, respectively.

HD Hyundai Heavy Industries' overall order target achievement rate reached 78.2 percent. Its order backlog as of end-July stood at $60.68 billion on a delivery basis.

The company's cumulative sales from January through July came to 14.29 trillion won ($10.4 billion), up 51.5 percent from 9.43 trillion won in the same period last year, reaching 58.5 percent of its full-year target of approximately 24.41 trillion won. July sales totaled 2.08 trillion won, up 41.76 percent from 1.46 trillion won a year earlier, though down 8.98 percent from 2.28 trillion won the previous month.

Samsung Heavy Industries booked $10.2 billion in new orders over the same period, reaching 73 percent of its annual target of $13.9 billion. Its merchant vessel orders alone already stood at $5.8 billion, or 102 percent of the segment's target of $5.7 billion. The offshore division secured $4.4 billion in orders, equivalent to 54 percent of its $8.2 billion target.

Samsung Heavy Industries' order backlog as of end-July totaled $35.4 billion, covering 150 vessels and representing more than three years of stable workload. By vessel type, the backlog comprised 70 LNG carriers ($27.1 billion, 77 percent of the total), 25 container ships ($16.7 billion, 47 percent), 36 tankers ($4.7 billion, 13 percent), 15 very large gas carriers and very large ammonia carriers ($2.1 billion, 7 percent), and four offshore facilities ($8.3 billion, 23 percent).

The company expects favorable market conditions for LNG carriers to continue beyond the second half of this year, driven in part by US LNG export projects. Clarkson Research, a London-based shipping and shipbuilding market research firm, projects orders for around 125 LNG carriers this year and about 85 next year.

Hanwha Ocean secured a total of 30 new orders from January through July, comprising 26 merchant vessels, three energy plant units and one special-purpose vessel, for a combined order value of approximately $5.2 billion. By segment, merchant vessels led with $4.07 billion, followed by special-purpose vessels and other at $590 million, and energy plants at $540 million.

Hanwha Ocean has not disclosed a specific annual order target. Its full-year order totals were $9.11 billion in 2024 and $11.58 billion last year. As of end-July, its order backlog on a delivery basis stood at $25.3 billion for merchant vessels, $4.9 billion for special-purpose vessels and other, and $3.66 billion for energy plants, for a combined total of $33.86 billion.

Meanwhile, the three companies' combined order backlog from January through July reached approximately $130 billion, and analysts expect the figure to comfortably surpass 200 trillion won by year-end.