UPDATE: Samsung Heavy Industries has just secured a landmark order for seven container ships worth nearly $1.4 billion, propelling its shares upward by 4.3% on Thursday. This deal, finalized with an Asia-based shipowner, marks one of the largest single contracts in the company’s history, lifting its stock to 26,450 won.
The order, valued at approximately 1.92 trillion won, represents about 19% of Samsung Heavy’s recent annual sales. The vessels are slated for delivery between late 2025 and late 2029, further solidifying the company’s position in the competitive global shipbuilding market.
As of now, Samsung Heavy has secured a total of $6.9 billion in new orders this year alone, achieving 70.4% of its full-year target of $9.8 billion. The company has received orders for 39 vessels to date, including various types such as liquefied natural gas carriers and crude tankers. Its cumulative order backlog now stands at 132 vessels worth an impressive $28.2 billion, providing the shipbuilder with several years of production visibility.
Investors are responding positively to this news, viewing it as a sign that the global shipbuilding cycle may be on the upswing. In fact, Korean brokerages have begun raising target prices for Samsung Heavy, fueled by improving order quality and vessel pricing.
In addition to this recent contract, Samsung Heavy has been on a roll. Earlier this month, the company secured a separate agreement from a North American client for two crude carriers valued at approximately 290 billion won. Furthermore, it received a preliminary agreement to build a floating liquefied natural gas (FLNG) production unit worth around $650 million in July, boosting expectations for future contracts from U.S. energy companies.
Samsung Heavy’s robust performance isn’t just limited to orders. Preliminary third-quarter results indicate a revenue increase of over 13% year-on-year, with operating profit nearly doubling, thanks to stronger ship prices and a growing share of high-value vessels.
This latest development signals a bright future for Samsung Heavy Industries, as it continues to rebuild its momentum in a recovering market. The shipbuilder’s ability to secure substantial contracts reinforces confidence in its strategic direction and operational capability.
For investors, industry analysts, and maritime enthusiasts alike, all eyes will be on Samsung Heavy as it navigates through this promising phase, with more contracts likely on the horizon. Stay tuned for updates on this developing story.
