COSCO Corporation’s Full-Year Loss Widens

Image Courtesy: COSCO

COSCO Corporation (Singapore) Limited, a shipbuilding, marine engineering and dry bulk shipping group, saw a net loss of SGD 976.1 million (USD 695.5 million) in 2016, against a net loss of SGD 914.8 million (USD 651.8 million) recorded in 2015, mainly due to losses in shipyard in shipping operations. 

COSCO’s revenue decreased by 27.3% to SGD 2.6 billion in 2016 from SGD 3.5 billion in 2015 due to a decline in shipyard and shipping revenue.

Revenue from shipyard operations dropped by 27.4% to SGD 2.5 billion in 2016 from SGD 3.5 billion in 2015, owing to lower revenue contribution from ship repair, shipbuilding and marine engineering.

Additionally, revenue from dry bulk shipping and other businesses went down by 22.6% from SGD 39.4 million in 2015 to SGD 30.5 million in 2016.

The group said it continues to face challenging market conditions in the shipbuilding, shipping and offshore marine industry.

Due to the overcapacity in the shipbuilding industry amidst a weak global economy, the group’s shipyards have had fewer orders and lower contract prices. Additionally, the firm said it faced delivery extensions and cancellations. Subdued global economic conditions have also led to depressed shipping rates for COSCO’s dry bulk fleet.

As of 31 December 2016, COSCO’s gross order book stood at approximately USD 6.4 billion, with deliveries until 2019.

Subdued global economic conditions have also led to depressed shipping rates for COSCO’s dry bulk fleet. In October 2016 and February 2017, COSCO scrapped two of its dry bulk carriers and may consider scrapping more bulkers in 2017.

In the outlook for 2017, COSCO predicts that the shipbuilding and shipping segments will continue to be highly challenging.

Share this article

Follow World Maritime News

In Depth>

Events>

<< Jun 2017 >>
MTWTFSS
29 30 31 1 2 3 4
5 6 7 8 9 10 11
12 13 14 15 16 17 18
19 20 21 22 23 24 25
26 27 28 29 30 1 2

DSM17

Donsö Shipping Meet 2017 is an all inclusive exhibition. Meals, electricity, meeting schedule and banquette dinner is included…

read more >

TOC Europe

TOC (The Terminal Operations Conference) has long been considered best in class by container terminal operators and their suppliers…

read more >

Marine Philippines 2017

The 4th edition of PHILIPPINES MARINE 2017, SHIPBUILD PHILIPPINES 2017 and OFFSHORE PHILIPPINES 2017 is the only specialized Shipbuilding…

read more >

Bunkering Week 2017

IBC’s biennial Bunkering Week is back with its successful series of 3 co-located events: 8th Bunkering in Asia, 4th LNG Bunkering and EMTECH: Ship Emissions Technology Conference.

With a proven track record of bringing together top decision makers from various industry sectors, this remains the go to event for ship owners, fuel suppliers, traders and technology solution providers. Get in-depth and detailed market insights from experts who are taking the decisions, assess peer strategies and give shape to your own in this unrivalled gathering of shipping and marine fuel industry leaders.

Key Highlights for 2017:

* 3 Co-located Conferences

* 12+ Hours of Networking Time

* In-depth Review of Shipping Markets by Segment

* Ship Owner Positions on Emissions Compliance Scenarios

* Pricing Differentials and Availability across Different Fuels

* Technology and Analytics in Fuel Management and Emissions MRV

More info

read more >