Hyundai Heavy says $1.8 billion order canceled

Hyundai Heavy Industries Co. said Wednesday a 2.16 trillion won (US$1.8 billion) order to build an offshore facility has been canceled, but there are no losses for the shipbuilder.

In a regulatory filing, the world’s biggest shipbuilder by orders said Chevron North Sea Ltd. on Tuesday notified them of its decision to cancel the order to build a floating production storage offloading (FPSO) unit, citing a deteriorating business environment.

“As the process to build the offshore plant has not begun due to delays in Chevron’s final investment decisions, the company won’t suffer any losses from the order cancellation,” a company spokesman said by phone.

In April 2013, Hyundai Heavy received the huge order from the U.S. oil company but declining oil prices made it push ahead with the deal, he said.
Source: Yonhap