[Edaily Reporter Shin Ha-yeon ] On the 23rd, NH INVESTMENT & SECURITIES assessed that Hanwha Ocean(042660)is on the verge of announcing the results of its bids for the Canadian submarine project and the Venus Floating Production, Storage, and Offloading (FPSO) project in Namibia, noting that investors should pay close attention to the company’s future order momentum. The firm maintained its “Buy” investment rating and target price of 175,000 won.
Jeong Yeon-seung, an analyst at NH INVESTMENT & SECURITIES, stated, “All that remains is the announcement of the results for major project awards,” adding, “The results for mega-projects such as the Canadian submarine and the Venus FPSO are expected to be announced in June or July.”
Regarding the Canadian submarine project, Hanwha Ocean is currently competing against Germany’s ThyssenKrupp Marine Systems (TKMS). The Canadian government is in the process of selecting a preferred bidder, and the signing of the final contract—which will include price negotiations—is expected in early 2028.
Researcher Jeong explained, “We estimate that revenue from actual construction will be recognized starting in late 2029,” but added, “This project is a significant milestone for Hanwha Ocean in terms of securing a global submarine export reference, even more so than for profitability.”
The Venus FPSO is part of an offshore oil field development project in Namibia led by France’s TotalEnergies. As a very large floating production, storage, and offloading (FPSO) unit expected to begin crude oil production in 2030, revenue from its construction is projected to be fully reflected in the second half of 2027.
Researcher Jeong assessed, “Given the scale of the Namibian oil field, there is potential for additional FPSO orders in the future,” adding, “This order is a key project that will drive improved profitability for the business.”
He also highlighted the project’s potential to enhance the company’s standing in the global market, beyond the order itself.
Analyst Jeong analyzed, “If the company successfully secures the Canadian submarine order, it would enter the NATO market by surpassing TKMS—the world’s leading submarine exporter—and could thus emerge as a strong contender in anticipated future submarine export competitions, such as those in Saudi Arabia and Greece.”
He also noted, “If we succeed in winning the Venus FPSO contract, it will serve as an example of achieving success in competition with SBM Offshore, the world’s leading offshore equipment provider,” adding, “This will serve as an opportunity to strengthen our presence in the global offshore resource development market.”
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