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Major shipyards' losses from offshore plants to top 10 tln won
By KH디지털2Published : Oct. 27, 2015 - 09:32
South Korea's major shipbuilders, led by Hyundai Heavy Industries Co., are expected to suffer up to 10 trillion won in losses from a delay in the construction of offshore facilities and a series of order cancellations amid concerns that they are struggling with money-losing projects and a decline in new orders, industry sources said Tuesday.
The country's big three shipbuilders -- Hyundai Heavy, Daewoo Shipbuilding & Marine Engineering Co. and Samsung Heavy Industries Co. -- have racked up a combined loss of 8 trillion won ($7.8 billion) stemming from their loss-making offshore facility projects since 2010, according to the sources.
Hyundai Heavy logged 3.24 trillion won in losses stemming from its offshore projects, with the comparable figures for Daewoo Shipbuilding and Samsung Heavy at 3 trillion won and 2 trillion won, respectively.
In the just ended third quarter, Hyundai Heavy reported some 600 billion won in losses, and Daewoo Shipbuilding is expected to log an additional loss of up to 2 trillion won during the remainder of the year.
Hyundai Heavy, the world's top shipbuilder, and the two others already posted a combined 3.78 trillion-won net loss during the first half of the year due to the delivery of low-priced ships and increased costs stemming from a delay in the construction of loss-making offshore facilities.
Local shipyards also reported massive losses last year largely due to a rise in shipbuilding costs and poor performance from offshore plant construction.
For one, Hyundai Heavy swung to a net loss of 2.20 trillion won in 2014 from a net profit of 146.3 billion won the previous year.
It also recorded its biggest operating loss ever of 3.25 trillion won last year, a stark turnaround from an operating profit of 802 billion won a year ago.
During the third quarter of the year, Hyundai Heavy reported a loss of 678 billion won, while Samsung Heavy logged a net profit of 51 billion won.
"Local shipyards are facing increased uncertainties as the construction of offshore facilities has been delayed due to a protracted slump in oil and gas drilling," said Kim Hyun, an analyst at Shinhan Investment Corp. (Yonhap)
The country's big three shipbuilders -- Hyundai Heavy, Daewoo Shipbuilding & Marine Engineering Co. and Samsung Heavy Industries Co. -- have racked up a combined loss of 8 trillion won ($7.8 billion) stemming from their loss-making offshore facility projects since 2010, according to the sources.
Hyundai Heavy logged 3.24 trillion won in losses stemming from its offshore projects, with the comparable figures for Daewoo Shipbuilding and Samsung Heavy at 3 trillion won and 2 trillion won, respectively.
In the just ended third quarter, Hyundai Heavy reported some 600 billion won in losses, and Daewoo Shipbuilding is expected to log an additional loss of up to 2 trillion won during the remainder of the year.
Hyundai Heavy, the world's top shipbuilder, and the two others already posted a combined 3.78 trillion-won net loss during the first half of the year due to the delivery of low-priced ships and increased costs stemming from a delay in the construction of loss-making offshore facilities.
Local shipyards also reported massive losses last year largely due to a rise in shipbuilding costs and poor performance from offshore plant construction.
For one, Hyundai Heavy swung to a net loss of 2.20 trillion won in 2014 from a net profit of 146.3 billion won the previous year.
It also recorded its biggest operating loss ever of 3.25 trillion won last year, a stark turnaround from an operating profit of 802 billion won a year ago.
During the third quarter of the year, Hyundai Heavy reported a loss of 678 billion won, while Samsung Heavy logged a net profit of 51 billion won.
"Local shipyards are facing increased uncertainties as the construction of offshore facilities has been delayed due to a protracted slump in oil and gas drilling," said Kim Hyun, an analyst at Shinhan Investment Corp. (Yonhap)
