South Korean shipbuilding major Daewoo Shipbuilding and Marine Engineering (DSME) posted a KRW 5.13 trillion (USD 4.3 billion) worth loss for the full year of 2015.
DSME’s sales fell by 23% when compared to the previous year standing at KRW 12.97 trillion and the company’s operating loss amounted to KRW 5.51 trillion, the company said in a stock exchange filing.
The poor results were attributed to falling number of newbuilding orders and further delivery delays in its offshore segment that continued their negative effect on the company’s financial results.
The slump continues into this year as well, as South Korean’s big three, Hyundai Heavy Industries (HHI), DSME and Samsung Heavy Industries (SHI), failed to book any new ship orders in January.
The blank order-book adds to the woes of the big three, as they report major losses that forced them to cut their yearly targets with DSME eyeing USD 10 billion worth of new orders for this year.
The company has been in an intensive restructuring mode, offloading its non-core businesses and cutting workforce so as to boost liquidity.
In October 2015, state-run creditors of DSME decided to pump KRW 4.2 trillion (USD 3.7 billion) into the company, however, the Korea Development Bank (KDB) said that there will be no additional bailouts for Daewoo Shipbuilding this year, since it has already received KRW 2 trillion in aid.
World Maritime News Staff