South Korea: Concerns about contract cancellation for vessels ordered by Russia:
Korean shipbuilding worries:
The worries of Korean shipbuilding companies, which have increased orders from Russia, are deepening.
In case of prolonged conflict:
Delivery of Russian-ordered vessels amounting to 10 trillion won (970 billion yen) will be delayed.
It will lead to the cancellation of the contract on the Russian side.
Ships ordered from Russia:
Korean Shipbuilding Ocean,
Daewoo Shipbuilding Marine,
Samsung Heavy Industries, etc.
A Korean shipbuilding company has received an order from Russia for $ 8.05 billion.
As of the end of January, it is about 8% of the $ 97.8 billion in orders received by the three companies.
Order amount by company:
Samsung Heavy Industries ($ 5 billion),
Daewoo Shipbuilding & Marine ($ 2.5 billion),
The order is Korean shipbuilding and ocean ($ 550 million).
LNG carrier:
Most of the vessels ordered by the three companies are LNG carriers with nautical functions in the Arctic Ocean.
Russian energy company Novatec and
Major shipping company Sobu Confloat, etc.
The ship I ordered.
Ships to the Arctic Ocean:
Another risk factor is that the vessels ordered are for the Arctic Ocean.
Shipping companies that operate general routes do not need special functions such as ice resistance and icebreaking.
Receive payment at the time of delivery:
It is a contract structure that receives more than 50% of the total ship price at the time of delivery.
This is a cause for concern for a Korean shipbuilding company.
Analysis of KTB Securities:
Half of the three companies’ total Russian orders have not yet been built.
It is the delivery after 24 years.
–KED Global