October 13, 2015 12:07
Hyundai Heavy Industries, the world's largest shipbuilder, suffered an estimated W500 billion in operating losses in the third quarter of this year (US$1=W1,144).
That would bring the accumulated operating losses for the company to some W900 billion so far this year, with losses for the full year to exceed W1 trillion.
One securities analyst said, "Contrary to forecasts of a slight profit in the third quarter, offshore rig orders, including drilling platforms, were held up, causing Hyundai Heavy to suffer massive losses."
An industry source said, "Hyundai Heavy will have a tough time moving into profit even in the fourth quarter. At this rate, its losses will exceed W1 trillion for the second year running."
The situation at the other two top shipbuilders is not much better.
Daewoo Shipbuilding and Marine Engineering, which suffered losses of around W3 trillion in the second quarter, is expected to post additional losses in the third quarter as well.
An audit by creditor banks revealed additional losses at an overseas affiliate, and a W600 billion order for a drill ship scheduled for delivery in the third quarter was canceled, prompting the shipbuilder to set aside more money to cover for the loss.
Samsung Heavy Industries is expected to shift into the black in the third quarter, but it suffered W1.5 trillion in losses in the first half of this year and stands to see its full-year losses surpass W1 trillion if it fails to achieve more than a W500 billion profit in the fourth quarter.
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