[Yonhap News Photo]
Daewoo Shipbuilding and Marine Engineering, one of the world's three largest shipyards, Wednesday posted a first-quarter operating loss of 22.8 million US dollars, running counter to its earlier projection of profit.
In the January-March period, the troubled shipyard reported an operating loss of 26.3 billion won ($22.8 million) and a net profit of 31.4 billion won on sales of 3.53 trillion won. It did not provide comparable figures because it is revising earnings dating back to 2013.
The operating loss was attributed to more costs to finish some offshore projects.
Last year the shipyard, hit by a delay in the construction of offshore facilities and the cancellation of orders, posted a record net loss of 5.13 trillion won, compared with a profit of 33 billion won a year earlier.
Like other South Korean shipyards, Daewoo was the victim of a protracted slump in the global shipbuilding industry. Demand has been weak due to low oil prices while competition with Chinese rivals has intensified. Oil companies have reduced spending while rig owners have canceled orders or asked for delayed ship delivery.
Daewoo predicted a turnaround in the company's second-quarter earnings, citing reduced costs. It is scheduled to deliver seven gas carriers this year, 16 in 2017 and 18 in 2018. South Korean shipyards have been under pressure to step up restructuring and reduce debt.
Aju News Lim Chang-won = cwlim34@ajunews.com
reporter
Park Sae-jin
swatchsjp@ajunews.com
