SEOUL, KOREA - Dongbu Securities said on October 27 that the biggest beneficiary of the liquefied natural gas carrier projects commissioned by Korea Gas Corp. will be Daewoo Shipbuilding & Marine Engineering.

 

The state-run gas corporation announced its final bidding results for LNG carrier orders to transport shale gas from the Sabine Pass LNG Terminal in the Gulf of Mexico after Friday's market was closed. For regular-type ship orders, it selected the consortiums of Hyundai LNG Shipping-DSME and Korea Lines-DSME. As for the KC-1 type ships, the company picked the consortium between SK Shipping and Samsung Heavy Industries.

 

Dongbu Securities analyst Kim Hong-gyun said, "Daewoo Shipbuilding & Marine Engineering and Samsung Heavy Industries were the biggest beneficiaries of the deals offered by Korea Gas Corp. as they have had ample experience in LNG carrier shipbuilding." "Given DSME won four membrane-type ship orders that it has built for years, it is set to improve its profitability," he added.

 

After the announcement was made, the stocks of DSME and Samsung Heavy have been on an upward trend. At 9:14 am on the 27th, the shares of DSME were traded at 16,500 won, up 4.10 percent (650 won) from the previous trading day. Samsung Heavy Industries shares are up 2.63 percent from the previous day.

 

Source by : The Korea Economic Daily