The company continues its strong performance with recent contracts for LPG and LNG carriers as global demand rises
Category: Business
SEOUL — HD Korean Shipbuilding (HD한국조선해양) has secured contracts for 14 vessels worth a total of 1.971 trillion won (approximately $1.5 billion) over two days, marking a notable achievement in the shipbuilding sector. The contracts were finalized on April 2 and April 7, 2026, as the company continues to capitalize on rising global energy transport demand.
On April 2, HD Korean Shipbuilding signed contracts for four LPG carriers with Greek and Oceania shipowners. This includes two 90,000 cubic meter (㎥) LPG carriers valued at 349.8 billion won ($263 million) each and two 40,000 cubic meter (㎥) LPG carriers priced at 239.3 billion won ($180 million) each. These vessels are set to be equipped with environmentally friendly dual-fuel (DF) engines, aligning with global environmental regulations. They will be constructed at HD Hyundai Samho and HD Hyundai Heavy Industries, with delivery scheduled between 2028 and the first half of 2029.
In addition to the LPG carriers, on the same day, the company secured contracts for eight 50,000-ton petrochemical carriers (PC vessels) worth a total of 611.7 billion won ($460 million) from an Asian shipowner. These vessels will also be built at HD Hyundai Heavy Industries and are expected to be delivered by the first half of 2029.
On April 7, HD Korean Shipbuilding continued its success by securing contracts for two 174,000 cubic meter (㎥) LNG carriers from SONANGOL Shipping Holding Limited, valued at 770.2 billion won ($575 million). These LNG carriers will also be constructed at HD Hyundai Samho and are scheduled for delivery in the second half of 2029. The demand for LNG carriers is particularly strong, as they represent high-value vessels that are expected to contribute significantly to the company's profitability.
In total, the recent contracts comprise four LPG carriers, eight PC vessels, and two LNG carriers, demonstrating a diverse portfolio that spans the entire energy transport sector. This diversified approach is seen as a strategic advantage, especially in light of the increasing geopolitical risks and rising oil prices that have led to heightened demand for various types of tankers and gas carriers.
According to a report by Shinhan Investment Corp on April 13, 2026, the shipbuilding industry is entering a structural growth phase, moving beyond simple market recovery to expand overseas production bases. The report emphasizes that HD Korean Shipbuilding is at the center of this global expansion strategy.
HD Korean Shipbuilding is actively pursuing expansion in Southeast Asia and India, aiming to leverage lower labor costs and establish a competitive edge against Chinese shipyards. For example, the cost of building ships in Southeast Asia is approximately one-eighth that of South Korea, which could result in a 15% reduction in production costs. The company plans to increase its production capacity at its Philippine yard (HHIP) from four vessels per year to ten by 2030, and its Vietnamese yard (HVS) is also set to expand its production capabilities.
As part of its global strategy, HD Korean Shipbuilding is also collaborating with local shipyards in India and establishing new shipbuilding facilities, which will involve technology transfer and supply chain development. This approach is expected to significantly boost the company’s growth potential in these markets.
In terms of financial performance, HD Korean Shipbuilding has seen a notable increase in profitability, with projected net income rising from 621.5 billion won ($470 million) in 2024 to 1.415 trillion won ($1.06 billion) in 2025. The company has also raised its revenue target for 2027 from 19 trillion won ($14.3 billion) to 25.9 trillion won ($19.4 billion), highlighting its optimistic outlook.
The expansion into international markets is also supported by the merger of HD Hyundai Heavy Industries and HD Hyundai Mipo, which has allowed the company to cover a full range of tanker types, enhancing its competitive edge in the global shipbuilding market.
HD Korean Shipbuilding's strategy appears to be paying off, as evidenced by its recent contracts and the growing demand for diverse types of vessels. The company has accumulated a total of 68 orders in the first quarter of 2026, including 12 LNG carriers, 20 container ships, nine LPG and ammonia carriers, and seven oil tankers, demonstrating its ability to adapt to changing market conditions.
As the global energy transport demand continues to rise, HD Korean Shipbuilding's strategic focus on high-value vessels and diverse ship types positions it well for future growth. The company’s ability to secure contracts across various segments of the energy transport sector reflects its resilience and adaptability in a competitive market.
HD Korean Shipbuilding's recent success in securing contracts for 14 vessels reinforces its status as a leader in the shipbuilding industry, with a strong focus on meeting the growing demand for energy transport solutions. The company is set to continue its upward trend as it expands its operations globally and strengthens its market position in the coming years.