JP Morgan orders two VLCCs from Hanwha Ocean for $267 million

Shipbroking sources identified JP Morgan on Nov. 2 as the buyer behind Hanwha Ocean's 356.8 billion won ($267 million) order for two very large crude carriers.

The transaction equals 2.8% of Hanwha Ocean's 2025 consolidated revenue of 12.78 trillion won ($9.56 billion). Pricing averages roughly $133.5 million per tanker, based on an exchange rate of 1,336.30 won per dollar.

Hanwha Ocean disclosed the contract on Oct. 30 through a regulatory filing to the Financial Supervisory Service. The shipbuilder signed the construction agreement on Oct. 29 with an entity registered as a Bermuda-based owner.

Construction of both 300,000 deadweight ton vessels will take place at Hanwha Ocean's Geoje shipyard in South Korea. The formal contract period runs from Oct. 29, 2026 to Sept. 30, 2030.

The order extends an aggressive tanker campaign by JP Morgan's maritime investment arm. The Wall Street lender now holds 12 very large crude carrier newbuildings across shipyards in South Korea and China.

The latest contract pushes JP Morgan's reported capital commitments for very large crude carriers to roughly $1.55 billion. The group has steadily expanded its exposure to energy shipping over the past two years.

JP Morgan previously booked two 320,000 deadweight ton crude carriers at Hanwha Ocean in July 2026. That earlier agreement was valued at 394.3 billion won ($265 million), or roughly $132.5 million per vessel.

Those July tankers are scheduled for delivery from the Geoje yard by March 2030. That transaction had brought the lender's crude carrier orderbook to 10 vessels before the latest award.

The financial institution also contracted tanker tonnage in China earlier this year. An affiliate of JP Morgan ordered two firm 307,000 deadweight ton crude carriers at Dalian Shipbuilding Industry Co., alongside two optional slots.

Dalian Shipbuilding Industry Co. priced those vessels at approximately $123 million each for 2029 delivery. The price gap shows a premium of more than $10 million per hull for South Korean construction slots.

For Hanwha Ocean, the transaction lifts its very large crude carrier order intake to 21 vessels in 2026. Crude tankers now represent nearly half of all commercial hulls secured by the shipbuilder this year.

Hanwha Ocean has secured 44 vessel orders worth about $8.11 billion across all commercial categories in 2026. The tally includes eight liquefied natural gas carriers, six container vessels and three very large ammonia carriers.

The yard also booked three very large gas carriers and one offshore wind installation vessel this year. The intake reflects a broad commercial pipeline, though crude carriers have formed the primary volume driver since spring.

Crude tankers accounted for more than 60% of all commercial vessels contracted by Hanwha Ocean through late summer. That emphasis marks a deliberate operational shift to balance high-specification gas tonnage with series tanker construction.

Global tanker demand has gained momentum as shipowners replace aging fleets to meet stricter international environmental standards. Geopolitical rerouting around the Cape of Good Hope has lengthened voyages, tying up tonnage and raising freight rates.

Rising newbuilding prices have allowed major South Korean shipyards to raise profit margins on long-dated slots. Shipbuilders have filled dry dock availability through 2028, pushing standard delivery dates for large commercial hulls into 2029 and 2030.

Hanwha Ocean reported an order backlog of $36.22 billion during its third-quarter earnings presentation on Oct. 27. That order volume covers roughly three years of full-capacity production across its active shipbuilding facilities.

The shipbuilder collects progress payments alongside an initial down payment and milestone installments under the Bermuda contract. The structure protects cash flow while locking in profitable construction margins through the multi-year build schedule.

JP Morgan has widened its maritime portfolio across several commercial vessel segments during 2026. The lender's transport division has committed capital to liquefied natural gas tankers, very large gas carriers and suezmax crude vessels.

Maritime industry executives said in May that the investment group had arranged more than 30 newbuilding contracts. Those transactions across tanker and gas carriers represented more than $3 billion in aggregate capital expenditures.

Commercial banks and private funds have increasingly financed modern tonnage directly as institutional fleet owners. Long-term charters to international energy majors provide stable yields while capitalizing on modern, fuel-efficient hull designs.

South Korean yards maintain technological dominance in high-end crude tankers and cryogenic gas vessels. Tight dock availability across domestic competitors Samsung Heavy Industries and HD Korea Shipbuilding & Offshore Engineering has sustained bargaining power.

Hanwha Ocean has not officially named JP Morgan in its regulatory filings, identifying the buyer only as a Bermuda-based shipowner. JP Morgan has published no public filing detailing the transaction.

The contract runs through Sept. 30, 2030, with final deliveries expected during the second half of that year, Hanwha Ocean said. The schedule commits dock capacity at Geoje through the end of the decade.