South Korea’s DH Shipbuilding has scooped its second newbuilding contract of the year with an order from Geneva-based Advantage Tankers for up to three suezmax tankers.
Shipbuilding sources said Advantage is paying more than $81m each for the 158,000-dwt ships, which will be fitted with scrubbers and will be LNG dual-fuel ready.
The deal involves two firm vessels and an option on an additional ship.
The yard is slated to deliver the two firm suezmaxes in mid-2025.
A source familiar with DH Shipbuilding confirmed the order.
Advantage’s plans to order the crude carriers were first reported last month.
At that time, Advantage chief executive Togrul Tokgoz revealed that a letter of intent had been signed but did not name the shipyard.
It is the yard’s second newbuilding contract this year. In January, Greece’s Golden Energy Management ordered one firm suezmax tanker at a reported price of $77m to be delivered in late 2024. The deal included option for an additional vessel.
Newbuilding brokers described DH Shipbuilding as a medium-size shipyard in South Korea and it focuses on suezmax and aframax crude carriers and product tankers.
“Due to its limited shipbuilding capacity, DH’s annual target for newbuilding is about 12 vessels only,” one source said.
DH Shipbuilding was previously known as Daehan Shipbuilding and was under the control of the state-owned Korea Development Bank (KDB) after filing for bankruptcy restructuring in 2009 when the shipbuilding market collapsed.
The shipyard was taken over by merger-and-acquisition specialist KH Investment — the owner of K Shipbuilding (the former STX Offshore & Shipbuilding) in September 2022.
KH Investment paid KDB about $200m for its stake of around 90%. Creditors and commercial banks continue to hold the remaining shares.
KH Investment is also the owner of K Shipbuilding — the former STX Offshore & Shipbuilding. The investment firm joined forces with debt clearing house United Asset Management Co to buy a 95% stake in the Chinhae-based shipyard in early 2021 from KDB and the Export-Import Bank of Korea.
The duo was reported to have paid KRW 250bn.