Thursday, November 28th, 2013
SEOUL, KOREA - Daishin Securities said on November 26 that a market of at least US$20 billion will open up for Korea's construction contractors after the Iran nuclear deal.
It picked Daelim Industrial as the company most likely to benefit from the agreement. Cho Yun-ho, Daishin Securities analyst, said, "The aggregate volume of projects planned in Iran for the next year is estimated at $21.3 billion. Including other deals related to oil refining, gas processing, and power generation, the order volume will rise further."
Assuming that Korean EPC (engineering, purchasing, and construction) contractors can regain the previous level of market share in Iran, the 2014 order volume for them would be $2.7 billion. The average market share between 2002-2009 of five EPC contractors in Iran was 13.6 percent.
The analyst added, "Most contractors who won oil and gas projects in Iran after 2010 were Iranian ones. But Daelim Industrial is in an advantageous position because it has had presence in the market for a long time. The company has an order booking balance of 550 billion won in four sites in Iran.