South Korea’s financially-troubled Daewoo Shipbuilding & Marine Engineering Co. (DSME) that is under pressure to repay debts maturing in April secured a new shipbuilding order worth 414.4 billion won ($363.3 million) in three months after it won another vessel order in December.

The shipbuilder said Thursday it inked an agreement with a European oceangoing vessels operator to construct two 173,400-cubic meter class liquefied natural gas (LNG) carriers at 414.4 billion won in total. The order was reportedly placed by John Fredriksen, Norwegian oil tanker and shipping magnate. The contract value may double to 830 billion won, if the client chooses to have two additional vessels built under the deal.

This LNG carrier construction order marks as DSME’s first one for the year following its order won in December last year from a Greek shipper to build an LNG-floating storage regasification unit vessel.

Following the new shipbuilding order, DSME will be receiving an advance payment that is expected to help repay its 440 billion won worth debts maturing in April.

Separately, DSME also signed an agreement with Frontline Ltd., which is controlled by Fredriksen, to sell two very large crude carriers (VLCCs) at 180 billion won. The Korean shipbuilder has been constructing the two VLCCs for an Oceanian shipper but the contract was canceled in August last year.

The combined value of the four LNG carriers including the option to build additional vessels and the two VLCCs would reach over 1 trillion won, said the company.

DSME’s new LNG carrier, 295 meters long and 46 meters wide, will be constructed at the shipbuilder’s Okpo Shipyard on Geoje Island off the southern coast with a plan to delivering the vessel by the second half of 2019. Industry watchers predict the LNG-powered, eco-friendly vessel will be an integration of the shipbuilder’s shipbuilding technology meeting the latest environmental standards.

Shares of Daewoo Shipbuilding & Marine Engineering closed unchanged at 44,800 won in Seoul trading on Thursday.

By Kim Jung-hwan

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