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Hanwha Ocean said in its quarterly results presentation on Monday that the LNG carrier newbuilding market “softened” due to low charter rates, but a second-half recovery is expected from US LNG projects.
The shipbuilder said, “55 mtpa of new US export terminals are expected to begin operations in 2025, supporting rate rebound and demand.”
Hanwha and its units have a stake in US LNG firm NextDecade, which is building the Rio Grande LNG export terminal in Texas.
According to the presentation, Hanwha Group has a 22.7 percent stake (HIP 9.1 percent, Aerospace 6.8 percent, Ocean 6.8 percent) in NextDecade and is the largest shareholder.
NextDecade is currently building three trains with plans for more, but it also recently announced plans to build up to five more trains at the Rio Grande LNG facility.
“Up to four additional trains are scheduled to be built in the future, creating demand for new construction of more than 20 LNG ships for transportation volume,” Hanwha Ocean said.
In addition to US LNG projects, the shipbuilder said that future orders for LNG carriers will likely rise to replace inefficient steam turbine LNG carriers.
Hanwha Ocean also noted there is “potential boost in demand from SHIPS Act and US sanctions on Chinese ships, depending on policy developments.”
LNG carriers boost profit
Hanwha Ocean reported revenue of 3.14 trillion won ($2.19 billion) and operating profit of 258.6 billion won in the first quarter, up 38 percent and 389 percent, respectively, year-on-year.
The shipbuilder said revenue increased thanks to higher shipbuilding volume and a greater proportion of LNG carrier sales.
“The proportion of low-margin containership orders has declined, while the share of profitable LNG carrier projects continues to expand rapidly,” it said.
In 2025, profit is expected to increase driven by the “delivery of loss-making containership
projects and the continuous construction of high-priced LNG carriers.”
Hanwha Ocean has booked two LNG carriers for 2025 to date.
The shipbuilder will build the vessels for its shipping unit Hanwha Shipping.
As of the end of March 2025, Hanwha Ocean had 69 LNG vessels worth $16.5 billion in its orderbook.