(Adds comments from analysts)
SEOUL Dec 31 Samsung Heavy Industries Co Ltd
said an Asian firm which it did not identify
cancelled an order for a floating production, storage and
offloading (FPSO) unit worth 505 billion won ($471.71 million).
The buyer had previously delayed the order due to financing
woes and difficulty in obtaining a charter for the vessel,
Samsung Heavy said in the regulatory filing on Monday.
The order - worth about 4 percent of the annual sales of the
world's third-largest shipbuilder - was made in June 2007, and
Samsung Heavy was initially scheduled to deliver the FPSO by
September 2010. The delivery deadline was subsequently postponed
to Dec. 31, 2012.
This year has been a challenging year for some FPSO owners,
with the euro zone debt crisis making it tougher to obtain
financing for projects and energy explorers holding back in
response to an uncertain demand outlook for oil.
"It is not an insignificant sum, so it may affect the
company's fourth-quarter earnings," said Shim Won-seob, an
analyst at IBK Investment & Securities. "However, since it is a
FPSO, rather than a merchant vessel, they will probably be able
to find another buyer for it."
Some analysts said this particular cancellation was likely
due to the individual circumstances of the buyer.
Shares in Samsung Heavy closed at 38,550 won on Friday, up
2.25 percent. Trading will resume on Wednesday when the stock
South Korean shipbuilders underperformed in 2012, with the
sub-index gaining just 3.4 percent compared to the
Korea Composite Stock Price Index (KOSPI), which rose
(Reporting by Somang Yang; Editing by Ryan Woo)