On the 25th, Kim Dae-sung, an analyst at DS Investment & Securities, stated in a report, “We believe the company is leading the way among domestic shipbuilders in securing FDC orders, thanks to its proven seawater cooling and safety facility technologies, which are backed by its unrivaled FLNG construction capabilities.”
Recently, floating data centers have emerged as an alternative to onshore data centers due to bottlenecks in power supply and land permits. Analyst Kim explained that inquiries from global big tech companies are currently focused on the “nearshore” model, which features relatively simple design and quick delivery times.
He said, “The initial FDC market is expected to be driven by a series of orders for 70–100 MW nearshore models—an increase in capacity from the existing 50 megawatt (MW) offshore models,” adding, “The construction period is expected to be around two years.”
He further analyzed, “Given the incorporation of high-value-added equipment such as seawater cooling and safety systems, as well as the economies of scale resulting from large-scale series orders, it is entirely feasible to achieve higher ship prices and margins than those of commercial vessels.”
He also predicted that the FLNG business would enter a phase of full-scale growth. Researcher Kim explained, “With the signing of the main contract for the Mozambique FLNG project and the award of the Delfin-1 contract, we have secured a total order backlog of four FLNG units. Meanwhile, negotiations for additional orders—including the Delfin-2 unit and a large-scale FLNG unit for the Western project—are proceeding smoothly in the second half of the year.”
Accordingly, revenue in the FLNG sector is projected to expand to 3 trillion won in 2027 and 4.5 trillion won in 2028.
He added, “In 2028, we expect to enter a high-margin range of over 20% as the repeat-order effect from the delivery of the Z-LNG and Cedar FLNG units aligns with the settlement of change orders,” and “Starting with orders secured in 2027 and beyond, the adoption of SENSPO—the liquefaction equipment developed by the company—is expected to lead to a further improvement in profitability through the in-house production of core components (accounting for 30–35% of FLNG costs),” he added.
Analyst Kim noted, “Further re-rating is expected depending on whether the company secures orders for floating data centers in the future,” and assessed, “If the company begins securing orders for new-build FDCs in earnest, its vessel portfolio will be restructured to focus on high-margin vessel types such as liquefied natural gas carriers (LNGCs), FLNGs, and FDCs.” He added, “Expectations regarding MASGA, including the construction of the NGLS project, also remain strong.”
