Samsung Heavy Industries secured $10 billion in new orders this year, representing 72% of its annual target, with 45% coming from its core Floating Liquefied Natural Gas (FLNG) production facilities, according to a report published July 16. The company is expanding into Floating Data Centers (FDC) while maintaining its dominant position in the FLNG market with a 44% global market share. Samsung Securities maintained a 'buy' rating on the stock, citing gradual resolution of concerns over lower profitability compared to competitors and absence of defense business operations.
Samsung Heavy Industries Secures $10 Billion Orders With 45% From FLNG
Samsung Heavy Industries secured $10 billion (approximately 14.9 trillion won) in new orders this year, exceeding last year's full-year order volume by 26% and achieving 72% of this year's order target. FLNG orders accounted for 45% of this year's total orders. According to Clarkson, a UK-based shipbuilding and maritime market analysis firm, Samsung Heavy Industries holds a 44% market share in the FLNG sector based on combined order backlog and fleet. The company has secured 100% of orders for large-scale FLNG units exceeding 300万TPA capacity.
Samsung Heavy Announces Commercial FDC Timeline and OpenAI Partnership
Samsung Heavy Industries became the first major shipyard to announce a commercial service timeline for Floating Data Centers (FDC). The company's competitiveness stems from its proven expertise in floating offshore structures such as FLNG, which involves relocating onshore plants to limited offshore spaces. A group-level partnership with OpenAI on data center infrastructure has been established, according to the report.
Samsung Securities Forecasts Q2 Revenue of 3.287 Trillion Won
Samsung Securities forecast Samsung Heavy Industries' Q2 revenue at 3.287 trillion won and operating profit at 353 billion won, representing year-over-year increases of 22.5% and 72.2% respectively. The operating profit estimate is 10.3% below market consensus. Samsung Securities lowered its target price from 43,000 won to 40,000 won while maintaining a 'buy' rating, indicating an upside potential exceeding 83% compared to the previous day's closing price of 21,850 won.
Han Young-soo, researcher at Samsung Securities, stated that while Q3 performance may appear weaker relative to competitors, orders secured at high ship prices and hedged at high exchange rates will eventually be recognized as revenue, resulting in final profitability levels similar to competitors.
Samsung Heavy Explores Participation in US Military Vessel Programs
Samsung Heavy Industries is exploring potential participation in US next-generation military support ships and medium refueling vessel programs, according to the report. This development addresses previous concerns regarding the company's lack of defense business operations compared to competitors.
FAQ
What percentage of Samsung Heavy Industries' orders this year came from FLNG?
45% of Samsung Heavy Industries' orders this year came from FLNG (Floating Liquefied Natural Gas production facilities).
What is Samsung Heavy Industries' market share in the FLNG sector?
Samsung Heavy Industries holds a 44% market share in the FLNG sector based on combined order backlog and fleet, according to Clarkson. The company has secured 100% of orders for large-scale FLNG units exceeding 300万TPA capacity.
What are Samsung Securities' Q2 forecasts for Samsung Heavy Industries?
Samsung Securities forecast Q2 revenue at 3.287 trillion won (up 22.5% year-over-year) and operating profit at 353 billion won (up 72.2% year-over-year), though the operating profit estimate is 10.3% below market consensus.
