Daewoo Shipbuilding Loses Billions


Due to writing down more charges from offshore projects which are under construction, Daewoo Shipbuilding & Marine Engineering Company, the world’s second-biggest shipbuilder, has posted a record loss of US$4.3 billion in 2015, according to Bloomberg.

Daewoo Shipbuilding said in a statement: “Earnings are expected to turn around this year as more high-valued gas carriers are built. The company has sufficiently set aside provisions that will eliminate any uncertainties.”

According to IHS Fairplay, the previous market consensus was that the company could post a loss of this magnitude as a result of the postponing of drillship deliveries, triggered by the collapse in oil prices.

The collapse in oil prices has also affected global shipping lines, as has the slump in freight rates, with the recent slump in the Chinese economy impacting global trade demand.

PTI previously reported that South Korean shipbuilder Samsung Heavy Industries recently made a loss of US$1 billion due to a slump in global demand.

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