Hankuk Carbon said on Thursday it recently signed a 15.6 billion won ($14.4 million) contract to provide ultra-low temperature insulating materials for LNG-propelled container ships to be built by Spanish company Gabadi S.L. and Chinese shipbuilder Jiangnan Shipyard.

Jiangnan Shipyard is building four LNG-propelled container vessels for CMA-CGM of France. Gabadi S.L. is responsible for the construction of LNG fuel tanks for the ships. The contract signed between Hankuk Carbon and Gabadi is valid until August 31, 2019.

The vessels represent the world’s largest ones powered by LNG, where MARKⅢ insulation panel technology from France’s GTT will be applied to the fuel tank. Hankuk Carbon has earned fame for its reliable supply of insulating materials for LNG carriers over the last 15 years. Gabadi is the industry’s first constructor that received a technology license from GTT.

In November 2017, Gabadi formed an alliance with Hankuk Carbon to work together in the small- to medium-scale LNG bunkering market.

Meanwhile, Hankuk Carbon swung into the red in the first quarter with an operating loss of 832.14 million won from an operating profit of 4.28 billion won a year ago. Sales reached 53.17 billion won in the quarter, down 11.1 percent from 59.86 billion won a year ago. Net profit nearly halved to 219.87 million won. Korea Investment & Securities maintained its ‘buy’ recommendation with a target price of 9,000 won, saying the company could improve profit with stable prices of its key product MDI and a hike in carrier service fees.

On Thursday, Hankuk Carbon shares rose 5.52 percent to close at 6,850 won.

By Song Min-geun and Minu Kim

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