URGENT UPDATE: Samsung Heavy Industries has just announced a monumental contract for seven container carriers, worth nearly $1.4 billion (2 trillion won). This landmark order, placed by an Asia-based shipowner, has sent the company’s shares soaring by 4.3% to close at 26,450 won on Thursday, signaling a potential turnaround in the global shipbuilding market.
The contract, disclosed in a regulatory filing, represents about 19% of Samsung Heavy’s most recent annual sales. The vessels are set for delivery between late 2025 and late 2029, marking one of the largest single contracts in the company’s history. This significant deal propels Samsung Heavy’s total orders for the year to $6.9 billion, achieving 70.4% of its full-year target of $9.8 billion.
Samsung Heavy has reported an impressive tally of 39 vessels ordered year-to-date, which includes a diverse range of ships such as liquefied natural gas carriers, shuttle tankers, and crude carriers. The company’s order backlog now stands at 132 vessels, valued at $28.2 billion, providing several years of production visibility.
Investors are responding positively, viewing the new contract as a clear indicator of an improving shipbuilding cycle. Korean brokerages are already raising their target prices for Samsung Heavy, citing a boost in order quality and a recovery in high-end offshore projects. The company’s recent momentum includes a separate contract from a North American client for two crude carriers worth a combined 290 billion won.
In July, Samsung Heavy secured a preliminary agreement to build a floating liquefied natural gas (FLNG) production unit valued at approximately $650 million, further bolstering investor confidence. FLNG units are crucial offshore infrastructures for extracting and liquefying natural gas, and Samsung Heavy is recognized for constructing some of the most complex units globally.
The broader business outlook for Samsung Heavy has brightened significantly, with preliminary third-quarter results indicating a revenue increase of over 13% year-on-year, and nearly doubling operating profit. This growth is driven by rising ship prices and an expanding share of high-value vessels and offshore units.
As the shipbuilding industry begins to show signs of recovery, stakeholders will be closely monitoring Samsung Heavy’s future contracts and market movements. The company’s strategic positioning and recent successes suggest a robust future ahead.
Stay tuned for more updates as this developing story unfolds.
