Shipbuilding and dry bulk shipping company Cosco Corporation (Singapore) Limited expects to record net loss in the quarter ended September 30, 2015, as compared to a profit recorded in the corresponding period of the previous financial year.
Cosco says that the loss is expected mainly due to the continuing depressed state of crude oil prices, which has had an adverse impact on the global offshore marine industry.
Another major reasons for the projected loss is the slump in the shipbuilding market which has negatively impacted the company’s shipyards, as well as the languid dry bulk shipping market which has brought great pressures to Cosco’s dry bulk fleet operations.
Cosco’s shipyards incurred higher costs for a few delayed projects as well as writedowns of certain inventory in the quarter ended September 30, as a result of adverse market conditions, according to the company.
Provisions for impairment of trade receivables have also been made, and exact details of the company’s financial performance for the 3Q2015 will be disclosed on November 12, 2015.