Hyundai shipyard closes dry dock for first time in history

By Park Sae-jin Posted : September 1, 2016, 12:54 Updated : September 1, 2016, 12:54

[Yonhap News Photo]


Hyundai Heavy Industries, the world's largest shipbuilder, has closed a dry dock for the firs time in its history due to a dwindling backlog of orders.

Hyundai Heavy said one of its 11 docks were shut down Wednesday in the southeastern port of Ulsan. In the first seven months of this year, the shipyard has secured orders worth 1.2 billion US dollars for nine ships, down 71 percent from a year earlier.

Helped by restructuring and cost cuts, the company's second-quarter net income rose 60.4 percent on-year to 392.3 billion won (352 million US dollars).Operating profit surged 71.3 percent on-year to 557.2 billion won, compared to an operating loss of 171.0 billion won a year earlier.

Hyundai Heavy expects a profit in the third quarter, citing an agreement with Norwegian offshore drilling rig company, Fred. Olsen Energy, to end a dispute over the delayed delivery of a semi-submersible drilling platform built under a $700 million contract.

South Korean shipyards have been struggling with a protracted slump in the global shipbuilding industry. Oil companies have reduced spending while rig owners have canceled orders or asked for delayed ship delivery.

This year, Hyundai Heavy and two other leading local shipyards have been put under creditor-led restructuring.

Aju News Lim Chang-won = cwlim34@ajunews.com
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