Samsung Heavy Industries is expected to continue to win high value vessels and offshore facilities in the second half of this year.
According to Samsung Securities, the Korean shipbuilding giant posted a stable contract record for the first six months this year with growing proportion of offshore plant orders. Samsung contracted a total of around $9bn, having achieved 69% of annual order aim ($13bn).
Samsung is prospected to maintain its high operating margin by winning contracts for high value vessels, such as drillship, LNG carrier and etc., in the second half as well.
Meanwhile, Woori Investment & Securities forecasted that the Korean builder will gain KRW 3.653trn ($3.1bn) of revenue in the second quarter, up by 9.0% from the same period a year ago while its operating profit would see an increase by 2.1% year-on-year to KRW 294bn.
Controlling shareholders' net profit seems to record KRW 239bn, up by 23.7% from the same period a year ago, thus it is very likely to meet up with market consensus, Woori added.
Moreover, there are additional orders expected to come towards the second half, for instance, Petronas FLNG, Teekay FPSO, drillship and so on. Also, the builder already secured slots for two years in orderbook terms. Also, Samsung seems positive in its selective contracting activity for improvement of profitability.