Hyundai Heavy Industries Co and Hyundai Samho Heavy Industries have terminated ten VLCC construction contracts after an undisclosed Oceanian client failed to make payment of construction fees within the deadline.

The total value of the terminated contracts is approximately KRW980bn ($874m), reported Business Korea.

Go deeper with GlobalData

Data Insights

The gold standard of business intelligence.

Find out more

Related Company Profiles

View all

In November 2020, the company secured a contract from the Oceania-based shipping firm for construction of seven VLCCs.

Another contract to build three VLCCs of nearly $263m was also signed by the same client and the company.

Hyundai Heavy Industries Holdings said: “The client did not pay the contractual shipbuilding fee within the deadline so we notified the client of the termination of the contracts.”

The company informed that the cancellation of the contract will be recorded in its last year’s business performance.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

Korea Shipbuilding & Offshore Engineering (KSOE), the parent company of the two shipbuilding firms, recorded $66m as operating profits on a consolidated basis in 2020, indicating a drop of 74.4% from 2019.

Its sales plummeted by 1.8% in 2020 and recorded an operating loss of $16m in the last quarter of 2020.

Recently, KSOE signed contracts with European and African shipping corporations for the construction of three petroleum carriers (PCs) and two mid-sized liquefied petroleum gas (LPG) carriers.

The total value of the order was approximately $230m.

The LPG carriers and PCs will be constructed at Hyundai Mipo Dockyard in Korea’s Ulsan.

The delivery of the vessel will commence sequentially from the first half of 2022.