1. What’s the VLCC Order About?

Hanwha Ocean signed a contract with an Oceania-based client to build two VLCCs for KRW 353.6 billion. The contract period is 2 years and 6 months (from July 28, 2025, to January 31, 2028). This represents 3.3% of Hanwha Ocean’s estimated revenue for 2025.

2. Why is this Contract Significant?

This contract is expected to partially offset the decline in sales in Q3 2025 and contribute to securing a stable sales base by increasing the order backlog. It is expected to have a positive impact on strengthening the competitiveness and expanding the market share of the commercial ship business.

3. So, What About the Stock Price?

The market is expected to react positively to this contract, but the stock price increase may be limited due to the relatively small size of the deal. External factors such as raw material prices, exchange rate fluctuations, and market sentiment can also affect the stock price.

4. What Should Investors Do?

Instead of expecting a short-term surge in stock price, it is advisable to consider investing from a long-term perspective. Investors should continuously monitor the company’s earnings announcements, contract execution status, and changes in the external environment, adjusting their investment strategies accordingly. Furthermore, conducting additional analysis, such as cost analysis, competitive landscape analysis, and risk management strategies, is crucial to obtain the necessary information for investment decisions.