On November 13, South Korea’s K Shipbuilding (formerly STX Shipbuilding & Marine Engineering) announced that it has signed shipbuilding contracts with two European shipowners for 2+1 115,000-ton Aframax tankers and two 50,000-ton MR product tankers. The total contract value is 460 billion Korean won (approximately 3.15 US dollars, 2.23 billion Chinese yuan).
K Shipbuilding did not disclose specific information about the shipowners. According to Clarksons data, the Aframax tanker order was placed by JHI Steamship, a subsidiary of the Greek shipowner Samos Steamship, and is scheduled for delivery in 2028. The other two MR product tankers were ordered by the Greek shipowner SteelShips and will be delivered in 2027.
For reference, Clarksons data shows that the current newbuilding price for a 113,500-115,000 DWT Aframax tanker is approximately 72 million US dollars, a 4% decrease compared to 75 million US dollars in the same period last year. The newbuilding price for a 47,000-51,000 DWT MR product tanker is approximately 48.5 million US dollars, a 7% decrease compared to 52 million US dollars in the same period last year.
Including these two contracts, K Shipbuilding has secured a total of 15 new ship orders (including 1 optional order) this year, with a total value of approximately 1.28 trillion Korean won (approximately 877 million US dollars, 6.2 billion Chinese yuan).
The newly contracted ships are all environmentally friendly and highly efficient vessels that meet the International Maritime Organization (IMO) Energy Efficiency Design Index (EEDI) Phase III requirements, which come into effect in 2025. They feature a new hull design, and the efficiency of the ship’s propulsion system has been improved by approximately 2.4% compared to previous versions.
A representative from K Shipbuilding stated: “These orders are the result of the shipowners’ renewed recognition of the company’s long-accumulated technological capabilities and competitiveness in the medium-sized tanker sector. In the future, the company will continue to earn customer trust through ongoing technological development and quality improvement, delivering high-quality ships on schedule, and further consolidating its leading position in the medium-sized ship market.”
For a long time, K Shipbuilding has focused on medium-sized tankers such as 50,000-ton MR tankers and 115,000-ton Aframax tankers as its main products. In recent years, to actively respond to the IMO’s new environmental regulations and meet global demand for eco-friendly ships, K Shipbuilding has continuously invested in developing various types of eco-friendly fuel vessels, including LNG, ammonia, methanol, and /LNG dual-fuel powered ships, based on its extensive experience and delivery record in building medium-sized product tankers.
In the first three quarters of this year, K Shipbuilding achieved cumulative revenue of 899.7 billion Korean won (approximately 616 million US dollars, 4.37 billion Chinese yuan), reaching 96.26% of the total revenue for the entire previous year. It achieved an operating profit of 84.7 billion Korean won (approximately 58 million US dollars, 410 million Chinese yuan), reaching 763% of the operating profit for the entire previous year.
In 2024, K Shipbuilding achieved revenue of 934.7 billion Korean won (based on the annual average exchange rate, approximately 689 million US dollars, 4.9 billion Chinese yuan), a year-on-year increase of 32%. It achieved an operating profit of 11.1 billion Korean won (approximately 8.18 million US dollars, 58 million Chinese yuan) and a net profit of 42.5 billion Korean won (approximately 31.32 million US dollars, 224 million Chinese yuan) for the period, successfully turning a profit.
A responsible person from K Shipbuilding stated: “With the successful turnaround last year, the company has officially entered a growth trajectory. This year, by continuing to secure new shipbuilding orders, we have further strengthened the company’s profitability foundation and consolidated our position in the medium-sized ship market.”
It is reported that after K Shipbuilding was acquired in 2021 by a consortium consisting of United Asset Management Company (UAMCO), South Korea’s largest non-performing debt clearing agency, and the Korean private equity fund KH Investment (KHI), it has been working hard to normalize its operations. In 2021, K Shipbuilding recorded an operating loss of 200.144 billion Korean won, but in 2022, it achieved an operating profit of 23.246 billion Korean won, turning a profit. However, the path to profitability was not smooth; in 2023, the company again recorded an operating loss of 59.6 billion Korean won, falling back into the red. In 2024, K Shipbuilding returned to profitability, and in 2025, it rode this momentum to achieve explosive performance growth.
It is reported that as K Shipbuilding’s performance improves and its prospects brighten, KHI has initiated the process of selling its entire 49% stake in the company to UAMCO. UAMCO also plans to “bundle” the 49% stake acquired from KHI with its previously held K Shipbuilding shares and sell the combined package to a large domestic Korean shipbuilding company.
