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Daewoo Shipbuilding wins $873.74m LNG carrier order

Staff Writer |
Daewoo Shipbuilding & Marine Engineering has clinched deals worth up to some 1 trillion won ($873.74 million) from two European oceangoing vessel operators for the first time this year.

The contract for four ships will be valued at 600 billion won ($524.25 million) but it will exceed 1 trillion won ($873.74 million) with an option for two more vessels.

As DSME is under pressure to repay its 440 billion won worth debts maturing in April, there has been rumors about its crisis. With the latest deals, all eyes are on whether the company will be able to get out of the crisis.

The shipbuilder announced on March 2 that it inked an agreement with a European vessels operator based in the Marshall Islands to construct two 173,400-cubic meter class liquefied natural gas (LNG) carriers.

As the deal includes an option for two more ships, additional orders are also expected. The contract value may double to 830 billion won ($725.21 million), if the client chooses to have two additional vessels built under the deal.

In addition, DSME signed an agreement with Frontline, a Norwegian shipping firm, to sell two very large crude carriers (VLCCs).

The Korean shipbuilder has been constructing the two VLCCs for an Oceanian shipper but the contract was canceled in August last year. Accordingly, the actual value of the deals will surpass 1 trillion won ($873.74 million).

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