MARITIME vessel maker Yangzijiang Shipbuilding said that it has secured US$11.6 billion of order wins in the year to date.
This exceeds its target of US$4.5 billion for the 2024 financial year by 259 per cent, it noted in a quarterly business update on Thursday (Nov 7).
The robust order wins were fuelled by strong demand for dual-fuel container ships, oil tankers and gas carriers, said the mainboard-listed company. The strong order book brings revenue visibility up to mid-2028, it added.
The shipbuilder noted that it is on track to achieve delivery targets for FY2024, with 90 per cent or 57 vessels delivered of a target of 63.
Around 84 per cent of the new order wins were greener vessels, using engines that can run on alternative fuels such as methanol or liquified natural gas (LNG). The company said that this aligns with the green-transition trend in the maritime industry.
Container ships made up the largest number in the order book as at Nov 7 (95 vessels with a value of US$15 billion), followed by oil tankers (64 vessels with a total value of US$3.1 billion), bulk carriers (38 vessels at US$1.6 billion), and finally gas and ethane carriers (27 vessels with a value of US$2.5 billion).
Looking ahead, the company said that oil tankers and gas carriers will continue to fuel new-build orders.
The industry demand growth for oil tankers is expected to hit 2.5 per cent in compound annual growth rate (CAGR), while LNG carriers and liquefied petroleum gas carriers will likely see a CAGR of 3.6 per cent and 5.5 per cent, respectively.
Yangzijiang Shipbuilding shares rose 1.2 per cent or S$0.03 to close at S$2.58 on Thursday, before the update.
