Samsung, Daewoo Searching for Profit

Chief executive officers of Daewoo Shipbuilding & Marine Engineering (DSME) and Samsung Heavy Industries (SHI) are attending the offshore technology conference (OTC). And their participation appears to mean a lot. "Kim Jing-wan, the vice chairman of Samsung Heavy Industries, plans to hold a series of meetings with bigger oil-related clients, which are close to placing new orders for offshore projects with shipbuilders," a spokesman for SHI said, Monday.
"Kim will raise the appeal of our technology to current and potential clients in a specially designated booth," he added.
Ship orders have drastically evaporated since the second half of last year.
Even the top trio in the global shipyards ― Hyundai Heavy Industries (HHI), Samsung and Daewoo _ have won almost no orders this year, the lone exception being an SHI deal in January for a $680-million "oil production unit."
"It is highly unlikely that the global shipbuilding industry will turnaround within the second half of this year. But oil-related firms are still abundant in cash to push large-scale offshore projects," a Samsung spokesman said.
The global shipbuilding industry has been suffering a drastic downturn as orders have screeched to a halt ― hit by a collapse in world trade and the financing woes of shipping companies.
Shippers worldwide are idling their fleets, while order delays and cancellations are spreading from second-tier ship makers to the big players, making South Korea's leading shipbuilders find "alternative measures."
Korea is home to the world's biggest shipyards ― HHI, DSME, SHI and STX Offshore & Shipbuilding.
"With some 10 executives, the CEO of DSME Nam Sang-tae will himself meet the top officials of bigger ship owners and oil companies," a spokesman of DSME said.
Attendees at this year's annual OTC are navigating hasher waters in their industry than when they last convened.
"In certain economic times, attendees come to the OTC to find possible solutions that could reduce costs or improve performance," the organizer's spokeswoman Margaret Watson said.
Despite the difficult times, though, the four-day conference that opened Monday at the Reliant Center in Houston, Texas, will bring tens of thousands of energy professionals to get a glimpse of the latest technological advancements and hear about policy issues affecting the industry.
HHI and STX are set to send their senior level officials to the show hoping to strike big deals in plant-related businesses.
The yearly conference comes amid increased debate about opening additional areas off U.S. shores for oil and gas drilling.
HHI said that its first quarter net profit rose by 13 percent ― backed by foreign exchange gains from the weaker South Korean currency ― while DSME and SHI had defended their "bottom line," though the beleaguered economy had sapped demand.