Rumor: STX Offshore Close to US $2.8 Billion Containership Order

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April 27, 2011

Shares in STX Offshore & Shipbuilding (067250.SE) are up 7.1% at KRW31,900 on news that the South Korean shipbuilder is close to winning a KRW3-trillion (US $2.8 billion) container-ship order. A person familiar with the matter told Dow Jones Newswires earlier Tuesday that STX O&S has signed a letter of intent to build more than 20 container ships worth about KRW3 trillion for a Canadian ship owner Seaspan Corp (SSW) and the final contract will be out by the end of June. “STX Offshore usually gets orders for bulk ships, not for container carriers. Signing the LOI is not a final agreement of the deal, but the news is positive that there is strong demand for container ships,” says Shinyoung Securities analyst Um Kyung-a, who has a target price of KRW60,000.

(c) 2011 Dow Jones & Company, Inc.

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