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Hanwha Ocean said in its quarterly results on Tuesday that recovery in the newbuild market will be “driven by increased US LNG export projects and low shipyard pricing.”
The shipbuilder said that a gradual increase in LNG carrier charter rates is expected from the second half of this year, “positively impacting future ordering.”
In addition, cost competitiveness shift due to rising interest rates and steel prices, and expected acceleration of phase-out of steam turbine LNG carriers will also contribute to future orders.
Hanwha Ocean also cited a potential boost in demand “depending on SHIPS Act passage, Chinese yard sanctions, and international policy shifts.”
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 quarterly 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 and is progressing with plans to build two more trains. Earlier this year, it also announced plans to build up to five more trains.
“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.
65 LNG carriers
Hanwha Ocean booked two LNG carriers for 2025 to date.
The shipbuilder will build the vessels for its US shipping unit Hanwha Shipping.
In addition, Hanwha Ocean recently signed a contract with its US affiliate Hanwha Philly Shipyard to build one LNG carrier.
According to the shipbuilder, this project marks the first export-type LNG carrier order from a US shipyard since the late 1970s.
As of the end of June 2025, Hanwha Ocean had 65 LNG vessels worth $15.7 billion in its orderbook.
Hanwha Ocean reported revenue of 3.29 trillion won ($2.36 billion) and operating profit of 372 billion won in the second quarter, both up year-on-year and compared to the previous quarter.
The shipbuilder said revenue increased compared to the prior quarter driven by more working days and a higher proportion of LNG carrier projects.