Norwegian shipyards will build vessels for NOK 24 billion

Published 10.01.2019 // 11:37 CET

The seafood industry and ferry / cruise / passenger boats dominate the overview of the order intake of the shipyards in 2018.

In total, for 2018, 48 newbuilding contracts were registered for NOK 24.3 billion, – show the figures from the sales and marketing organization “Norske Skipsverft”.

Fishing boats, well boats and work boats for the aquaculture industry make up about 40 per cent of the order intake last year, measured in number of vessels. Ferries, cruise boats and passenger boats make up around 30 percent. Service ships for offshore wind power plants make up around 10 per cent.

“Norske Skipsverft” register all published contracts of more than NOK 50 million.

48 vessels

A total of 48 contracts totaling more than NOK 50 million were published in 2018, with a total value of NOK 24.3 billion.

In 2017, this was equivalent to 49 such contracts, with a total value of NOK 15.9 million. In 2016, a total of 30 vessels were signed, with a total value of NOK 12.7 million.

– These are good figures, but there is reason to point out that five of the orders – the three coastguard vessels (Vard Langsten) and the two ships for Viking Cruises (Vard Brattvaag) – have a value that corresponds to more than NOK 10 billion, and thus nearly fifty percent of the order book. The remaining 43 contracts thus have a total value of NOK 14.3 billion,writes CEO Asle Strønen in an email to NETT NO.

Thicker order book

The total order situation at Norwegian shipyards is 98 vessels with a contract value of NOK 48.2 billion. The corresponding figures for 2017 and 2016 were 85 vessels (with a contract value of more than 50 million) and NOK 34.5 billion and 66 vessels and NOK 28.3 billion, respectively,according to Strønen. The question is whether a thicker order book also means better profitability.  Seven out of 19 shipyards went in minus 2017 and the overall deficit increased.

Source: Sysla