en.Wedoany.com Reported - South Korea's mid-sized shipbuilder DH Shipbuilding (formerly Daehan Shipbuilding) has been consistently winning orders for Suezmax tankers this year, exceeding its full-year order target in the first quarter.

Specializing in Suezmax Tankers! DH Shipbuilding Secures Record Orders

On March 31, DH Shipbuilding signed a construction contract for 2 Suezmax tankers with a shipowner from the Oceania region. The contract value is 276 billion Korean won (approximately $181 million USD, 1.25 billion Chinese yuan), equivalent to a unit price of $90.5 million per vessel. These two new vessels are scheduled for delivery by September 2029. This contract also set a record for the highest price for this ship type in DH Shipbuilding's history.

For reference, Clarksons data shows that the current newbuilding price for a 156,000-158,000 DWT Suezmax tanker is around $87 million, roughly flat compared to the same period last year.

Although DH Shipbuilding did not disclose the specific information of the shipowner, it is reported that this order came from Swiss Maritime Capital, whose founder and chairman Martin Haugaard has confirmed the order. Additionally, Haugaard confirmed that the company had ordered 4 Suezmax tankers at DH Shipbuilding in February, to be delivered between 2027 and 2028.

Earlier on March 20, DH Shipbuilding also signed a construction contract for 1 Suezmax tanker with Laskaridis Shipping, with a contract value of 134 billion Korean won (approximately $89.1 million USD, 618.7 million Chinese yuan), scheduled for delivery in June 2029. This is an option order from the 2 Suezmax tankers Laskaridis ordered in January this year.

Thus, in the first quarter of this year alone, DH Shipbuilding has secured orders for 12 Suezmax tankers (6 in January, 2 in February, 4 in March), with a total value of $1.085 billion (approximately 7.413 billion Chinese yuan), achieving 105.3% of its full-year order target of $1.03 billion. DH Shipbuilding's current order backlog has increased to 35 vessels, with an order coverage ratio exceeding 3.5 years.

A DH Shipbuilding representative stated: "Amidst the favorable conditions in the tanker shipping market, not only existing clients but also new shipowners are positioning DH Shipbuilding as a 'trustworthy shipyard'. The consecutive signing of final construction contracts for our option orders is the result of combining shipowners' trust with our company's market competitiveness."

DH Shipbuilding CEO Lee Seok-moon said: "Following last year's best-ever business performance since the company's founding, we have achieved our full-year order target in the first quarter this year, significantly easing order intake pressure. The situation is encouraging." He added: "Based on a substantial order backlog, the company will focus on enhancing shipbuilding efficiency, maximizing profitability, and other aspects of internal growth."

Industry insiders in South Korea noted that since the beginning of this year, DH Shipbuilding has signed new shipbuilding contracts every month. While further securing stable workload, it is also actively advancing its profit-centered strategy, aiming for significant profit growth this year.

Particularly, with the blockade of the Strait of Hormuz due to the US-Israel-Iran conflict, DH Shipbuilding's market presence is further strengthening. This is because the demand for its main ship type, tankers, has surged sharply due to the impact of the strait blockade.

In fact, tanker demand was already on an upward trend before the US-Israel-Iran conflict erupted, and the outbreak of the war created an overlapping positive effect. With increasing order reserves and rising ship price expectations, DH Shipbuilding's performance outlook is further improving.

Stock Price Soars 28.3% Year-to-Date! DH Shipbuilding's "Specialization Strategy Pays Off"

A DH Shipbuilding representative stated at a recent meeting: "Currently, our price target in negotiations with shipowners is the highest record from previous orders, and we are striving to set a new all-time high." South Korean industry observers believe that DH Shipbuilding's strategy of selectively accepting orders to increase profits is expected to be further strengthened in the future.

Recently, newbuilding prices for tankers have been trending upward, mainly influenced by the diversification of crude oil supply sources and reduced capacity due to sanctions on Russia's "shadow fleet." Clarksons data shows that the price of a VLCC was around $125 million in May last year, rising to about $128.5 million by February this year.

Coupled with the blockade of the Strait of Hormuz due to the US-Israel-Iran conflict, capacity has tightened further, strengthening market expectations for further price increases. Although the US government recently moved to relax sanctions on Russia's "shadow fleet," analysis suggests the effect will be limited.

A South Korean industry insider said: "Even if sanctions on the 'shadow fleet' are lifted, considering factors like rejoining P&I insurance, it would take over a year to reintegrate them into the legitimate fleet. Against the backdrop of a sustained upward trend in tanker freight rates, newbuilding prices will also continue to rise."

Currently, DH Shipbuilding is maximizing production efficiency through batch construction of Suezmax tankers. During the period when carbon neutrality (net-zero) topics dominated the industry, DH Shipbuilding received relatively less market attention. However, with heightened geopolitical tensions and the trend towards energy diversification and security strengthening, the company's market popularity has significantly increased. Its stock price has risen from 66,800 Korean won (approximately 309 Chinese yuan) per share at the beginning of this year to 85,700 Korean won (approximately 388 Chinese yuan) per share as of March 31, a gain of 28.3%.

DH Shipbuilding's performance is also on an upward trend. According to consolidated financial statements, the company's operating profit increased from 35.9 billion Korean won in 2023 to 158.1 billion Korean won in 2024, and further to 294.1 billion Korean won (approximately $206 million USD, 1.43 billion Chinese yuan) in 2025, a year-on-year increase of about 86%. The full-year operating profit margin was about 24%, a significant increase of 9.2 percentage points from 14.7% in 2024.

Notably, DH Shipbuilding achieved a performance peak in the fourth quarter of 2025, taking profitability to a new level. In the fourth quarter alone, the company achieved revenue of 350.4 billion Korean won (approximately $245 million USD, 1.7 billion Chinese yuan) and operating profit of 95.3 billion Korean won (approximately $66.7 million USD, 463 million Chinese yuan). The quarterly operating profit margin reached 27.2%, setting another record high since the company's founding. Consequently, DH Shipbuilding has maintained an operating profit margin above 20% for five consecutive quarters, setting a rare industry record and further solidifying its unique position as the "shipyard with the best profitability" among its peers.

According to data from South Korean financial information firm FnGuide, the average forecast by South Korean securities firms for DH Shipbuilding's operating profit this year is 345.7 billion Korean won (approximately $230 million USD, 1.6 billion Chinese yuan), a year-on-year increase of about 17.5%.

IBK Investment & Securities researcher Oh Ji-hoon stated: "The explosive high demand in the tanker market will drive up newbuilding prices, thereby further boosting DH Shipbuilding's profitability. The company's operating profit this year is expected to reach 362 billion Korean won (approximately $240 million USD, 1.67 billion Chinese yuan)."

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