Shipbuilding industry is said to be entering into a road to recovery, passing through a protracted recession finally.
Analyst Yoo Jae-Hoon at Woori Investment & Securities of Korea revealed, “There have been signs of recovery in commercial vessel market, for instance, rising vessel prices and etc.,” and said, “In comparison with last year, drillship contracts show a relatively weak track record, however from the second half of this year, the recovery is likely to be seen”.
Particularly, in the year to May, the commercial ship market has seen a 71.9% increased accumulated order in dwt terms with a rise of 32.6% seen in second-hand vessel trading. Also, orders for small and medium-sized vessel, high-efficient and eco-friendly vessel are on the rise with ship values bouncing back, he continued.
He anticipated that in terms of large-size sector, orders are not yet active due to prolonged dismal condition of shipping market and weak ship financing however, it will follow the recovery trend. Korean builders are likely to see orders rise with their fuel-efficient technologies.
Yoo added that although there is mounting uncertainty on global energy prices, projects commence in order of higher profitability, thus demand for floating production facility which has relatively lower production costs will rise. The analyst also said that the deals contracted are enough even considering postponement of some LNG-FPSO projects which have a high-cost system amid declining global LNG prices.
Source: http://asiasis.com
