STX Offshore signs contracts for three tankers

STX Offshore & Shipbuilding CEO Jang Yoon-keun, left, and Woolim Shipping President Choi Jong-seok, shake hands after signing a contract for tankers. [STX OFFSHORE & SHIPBUILDING]

STX Offshore & Shipbuilding secured a contract to supply three tankers to a domestic shipper.

Struggling STX announced on Tuesday it will supply three 6,600 deadweight tonnage tankers to Woolim Shipping, which specializes in petroleum and petrochemical transportation.

STX did not disclose the price.

It is the first contract STX obtained in eight months.

Woolim Shipping previously placed an order for tankers from STX in 2017.

Including the new orders from Woolim Shipping, STX now has a 10-ship backlog.

The latest contract was achieved amid STX’s asset sales and workforce reduction, according to a spokesperson for STX.

STX said the ships meet the updated regulations of the International Maritime Organization (IMO), which prohibit ships from using fuel with a sulfur content above 0.5 percent, compared with the previous ceiling of 3.5 percent.

The tankers will be delivered starting in the first quarter of 2022.

The shipbuilder reported 8.88 billion won ($7.43 million) in net profit in the first quarter, down 86.9 percent from the same period a year ago.

STX said it expects an improvement in sales of mid-sized tankers and small to medium-sized LNG bunkering vessels and LPG carriers.

BY JIN MIN-JI [jin.minji@joongang.co.kr]