Daewoo Shipbuilding Posts USD 1.2 Billion Quarterly Loss

South Korea’s Daewoo Shipbuilding & Marine Engineering (DSME), the second biggest shipbuilder in the world, posted KRW 1.35 trillion (USD 1.2 billion) net loss for the quarter ended September 30, as falling number of newbuilding orders and further delivery delays in its offshore segment continued their negative effect on the company’s financial results for the second straight quarter.

DSME reported KRW 2.39 trillion (USD 2.1 billion) loss for the quarter ended June 30, 2015. This was the company’s biggest ever quarterly loss.

The financial report coincided with yet another delay for the delivery of drillships, after Transocean Ltd. and DSME yesterday agreed to push back the delivery date for two ultra-deepwater drillships, ordered back in 2012 and originally scheduled for delivery in October 2016, by twelve months each.

DSME also saw a contract for one drillship cancelled in August, after an unidentified American owner failed to make payments.

Back in July, the shipbuilder’s largest creditors, led by state-run Korea Development Bank, have started reviewing massive restructuring moves for the company, including the sale of non-core assets.

The creditors are expected to disclose the amount of funds to be allocated to the struggling shipbuilder on Thursday. DSME expects that the funds will help the company record better results in the fourth quarter of 2015.

World Maritime News Staff

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