Samsung Heavy Shifts To Q2 Net Loss On Costs

Samsung Heavy Industries Co., the world's third-biggest shipbuilder by sales, swung to a net loss in the second quarter from a year earlier on increased costs and one-off losses, the shipbuilder said Monday.

SEOUL, (UrduPoint / Pakistan Point News - 23rd Jul, 2018 ) :Samsung Heavy Industries Co., the world's third-biggest shipbuilder by sales, swung to a net loss in the second quarter from a year earlier on increased costs and one-off losses, the shipbuilder said Monday.

The company said in a regulatory filing that it posted a net loss of 142.7 billion won (US$126 million) in the three months that ended on June 30 compared with a net profit of 22.7 billion won a year earlier.

The company said increased fixed costs and losses stemming from a delay in the delivery of a drill ship to Ocean Rig cut into its quarterly bottom line.

Operating losses reached 100.5 billion won in the second quarter, shifting from a net profit of 20.6 billion won a year earlier, samsung Heavy said.

Sales fell 41.4 percent to 1.34 trillion won over the cited period. In December, Samsung Heavy said its operating losses in 2018 could narrow to 240 billion won from an estimated 490 billion won in 2017.

South Korean shipbuilders have struggled with an oversupply of vessels and declining orders since the 2008 financial crisis.