Hyundai Heavy Industries Co., a major South Korean shipbuilder, said Monday that it is targeting $19.5 billion worth of orders for the year, $3.4 billion less than the previous year's target.

In a regulatory filing, the shipyard also slashed its annual sales target to 21.64 trillion won ($18.4 billion) from 24.34 trillion won the previous year.

Hyundai Heavy and local rivals, such as Daewoo Shipbuilding & Marine Engineering Co., are struggling with increased costs stemming from a delay in the construction of offshore facilities and reduced orders.

Hit by an industrywide slump and increased costs, the country's big three shipbuilders -- Hyundai Heavy, Daewoo Shipbuilding and Samsung Heavy Industries Co. -- have logged a combined loss of 4.7 trillion won in the first half of the year, and their loss is widely expected to amount to over 7 trillion won last year as there's a delay in the construction of offshore facilities and a drop in new orders.

The combined operating loss by the country's big three shipyards is estimated at 7.8 trillion won for 2015, marking the first time they have suffered operating losses on an annual basis. (Yonhap)