Samsung Heavy Q1 profit rises 29% on ship prices

(Bloomberg) — Samsung Heavy Industries Co., the world's second-biggest shipbuilder, said profit in the first quarter climbed 29 percent as it built vessels at higher prices.

Net income increased to 115.8 billion won ($114 million) in the three months ended March 31 from 90.1 billion won a year earlier, the Seoul-based company said in a regulatory filing today. Sales rose 33 percent to 2.42 trillion won.

Korea National may jointly build $700m oil drilling ship

(Bloomberg) — Korea National Oil Corp. may jointly build a deep-sea oil drilling ship costing as much as $700 million with an unnamed overseas drilling company.

Both companies signed a preliminary agreement on April 18, Bae Ho Jun, spokesman at the state-run company said today. He declined to name the venture partner.

"The oil drilling ship will be jointly operated after building with equal investment," he said.

Ship orders face 15% cancellation, delays, Simpson, Spence & Young says

(Bloomberg) — Cancellations and delays of new vessels to carry commodities such as grains, iron ore and coal may run to 15 percent next year and in 2010, shipbroker Simpson, Spence & Young Ltd. said.

"There is a huge reliance on greenfield sites with no track record of building," John Kersey, an analyst at London-based SSY, which says on its Web site it's the world's largest independent shipbroker, told a McCloskey coal conference in Nice today.

"There is a probability we will have above average postponements and cancellations."

There are 60 million deadweight tons of dry bulk vessels on order for delivery next year and 90 million tons in 2010, Kersey said.

A deadweight ton is a measure of carrying capacity.

A ship can normally carry in metric tons an amount just below its deadweight capacity.