shipyards | Wetravel2u's Weblog

Fincantieri has announced that it has extended its agreement with the Italian energy company Eni for the continued development of initiatives in decarbonization and the circular economy.

The CEOs of Eni and Fincantieri, Claudio Descalzi and Giuseppe Bono, signed a memorandum of Understanding extending the cooperation in research and development, set up by the two Italian companies in 2017, to push technological barriers into the future.

According to Fincantieri, the main focus of the extension will be the development of new and innovative initiatives. The activities will focus mainly on waste to energy processes, production and transport of alternative energy sources such as natural gas, methanol, hydrogen and fuel cells, and the development and deployment of offshore renewable technologies.

Over the past three years, Eni and Fincantieri have collaborated on several concepts of floating offshore production platforms, with a modular and so-called reversible approach, developed according to a Fincantieri patent; a floating gas to methanol concept with Eni technology; and a floating independent power plant.

Descalzi, CEO of Eni, stated: “Thanks to the developed synergies, Fincantieri and Eni will support the country’s sustainable development. This agreement fits into our long-term strategy. To build the future Eni we are combining economic and environmental sustainability, we are working on a transition by providing energy in a profitable way and, at the same time, obtaining an important reduction in the carbon footprint. Natural gas, a fossil energy source with the lowest carbon footprint, will represent an increasing component of Eni’s energy mix in the coming years: 60% in 2025, reaching 85% in 2050. In this process, Fincantieri represents a strategic partner with whom we continue to research and develop innovative technologies and systems.”

Fincantieri’s CEO Bono commented: “We believe that the success of this partnership is very good news for Italy, especially given that the cooperation explores sustainable developments. The ability of big two national industrial players to pool experiences, skills, and above all their visions for the future, is a huge strategic achievement. I am very pleased because the research path we are charting with a group such as Eni has already led to the creation of several projects, consolidating a technological lead, which has allowed our companies to obtain important achievements worldwide.”

Hyundai Heavy Industries shipyard in Ulsan, about 410 km (255 miles) southeast of Seoul. REUTERS/Lee Jae-Won

(Bloomberg) — The world’s three biggest shipyards plan to raise a combined 8.41 trillion won ($7.3 billion) selling assets as part of a restructuring following losses last year.

Hyundai Heavy Industries Co., Daewoo Shipbuilding & Marine Engineering Co. and Samsung Heavy Industries Co. have submitted their fund-raising plans to their creditors, including state-run Korea Development Bank and KEB Hana Bank, South Korea’s government said in a statement Wednesday. The banks and regulators will meet twice a month to review the progress of the plans, according to the statement.

A slump in crude oil prices, which halved in the past two years, has roiled the nation’s shipbuilding industry as delivery delays and cancellations of projects translated into losses, while shrinking orders for new vessels have heightened concerns their cash may dwindle further. The South Korean government told the shipyards to submit their plans to help them better manage their financials and minimize the impact on the economy.

Turning Around

The government, on its part, said it will bolster capital of state lenders by creating a 11 trillion won fund to help cushion losses as banks aid the restructuring, it said in a statement separately. The steps may be coming amid nascent signs of a recovery. Vessel deliveries in terms of deadweight tons increased 39 percent in May from a year earlier, said Park Moo Hyun, a Seoul-based analyst at Hana Daetoo Securities Co.

“Things are starting to turn around for the shipyards as more vessels and offshore projects are delivered to clients,” Park said. “The focus now should be on providing funds to help them win new orders.”

Hyundai Heavy, whose first-quarter net income beat estimates, plans to raise 3.5 trillion won selling shares in other companies such as KCC Corp. and Hyundai Motor Co., as well as its three financial units, the Ulsan-based company said in a separate statement. It will also seek to save 900 billion won from job and pay cuts. The shipyard plans to cut its debt-to-equity ratio to 80 percent from the current 134 percent.

Jobs, Wages

Daewoo Shipbuilding, which counts Korea Development Bank as its biggest shareholder, will seek to raise 3.45 trillion won from sale of its 14 subsidiaries, two floating docks and the spin-off its specialty shipbuilding business, the company said in a separate statement. It will also reduce jobs and salaries to save money, it said.

The latest plan is in addition to the 1.85 trillion won the shipyard said it will seek to raise in October last year. Daewoo Shipbuilding reported a net income in the first quarter versus a loss a year earlier.

Samsung Heavy plans to sell assets through bond sales and reduce jobs to raise 1.46 trillion won, the company said separately. It also plans to sell new shares if more cash is needed, it said. Brent crude traded at $51.51 a barrel on Wednesday, compared with about $115 two years ago, according to data compiled by Bloomberg.

South Korea has urged the companies to restructure and improve efficiency, while pledging more steps to help them reduce debt and weather the global slump.