Daewoo Shipbuilding & Marine Engineering, the nation’s second-largest shipbuilder, is emerging as a dark horse in the industry, beating its global rival Hyundai Heavy Industries in business performance for the second consecutive year in 2014.

“Behind the success is better performance in high value-added energy and eco-friendly ship construction than our rivals,” DSME CEO Ko Jae-ho said in his New Year’s address in Seoul on Monday.

Despite the prolonged recession in the shipbuilding industry, the shipbuilder exceeded its yearly order target last year, securing contracts worth $14.9 billion. The company’s initial target, set in early 2014 was $14.5 billion.

The figure is also the second highest amount of annual orders since the company’s establishment in 1973, after recording $21.5 billion in 2007, Daewoo officials said.

DSME was also the only shipbuilder among the top three shipbuilders to surpass its annual goal in 2014, following 2013.

Hyundai Heavy Industries, the nation’s top shipbuilder, won $15.3 billion contracts last year, far below its yearly target of $25 billion. Another rival Samsung Heavy Industries was the worst performer among the three, winning $7.3 billion orders, less than half its yearly order target of $15 billion.

Despite the business results, DSME chief was cautious of a rosy outlook for 2015, mentioning continued uncertain business environment and rising competition.

The DSME chief underlined the importance of technological edge, citing the situation that Korean shipbuilders are caught between strong Chinese and Japanese competitors.

“We should not be satisfied with the current achievement and have to work hard to keep our competitive edge and reputation in gas carriers and eco-ship technology,” Ko said.

DSME stood ahead of other rivals in liquefied natural gas carrier construction last year. The company has won orders for 69 shipbuilding orders this year, of which 37 accounted for LNG vessels.

So far, DSME has won orders for 10 LNG carriers for the Yamal LNG project, a proposed plant at Sabetta, northeast of the Yamal Peninsula, Russia.

On Dec 30 last year, the company clinched orders for nine LNG carriers from two global customers. It clinched an order for four carriers from returning customer Angelicoussis Shipping Group, which ordered two new LNG carriers, and conversion orders for two existing very large crude carriers into LNG carriers.

DSME has also won an order for five LNG carriers from an Asian customer.

By Suk Gee-hyun (monicasuk@heraldcorp.com)