Samsung Heavy Slashes 2016 Operating Loss

The South Korean shipbuilder Samsung Heavy Industries (SHI) has managed to reduce its operating loss by around 90 percent due to a stabilization in shipbuilding and offshore construction, the company said in a stock exchange filing.

SHI ended the year with an operating loss of KRW 147.2 million (USD 126,200), against an operating loss of KRW 1.5 billion (USD 1.28 million) recorded a year earlier.

The data provided in the filing shows that the shipbuilder also cut its net loss by some KRW 1 billion, which represents an improvement of 88.5 percent.

At the end of 2016 the conglomerate’s net loss stood at KRW 138.8 million, compared to a net loss of KRW 1.2 billion seen in the full year 2015.

SHI’s revenues improved to KRW 10.4 billion from KRW 9.7 billion year-on-year, rising by 7.2 percent.

Due to forecasts that the shipbuilding industry could slightly improve during 2017, the shipbuilder decided to raise its orderbook goal to USD 6 billion, from last year’s USD 5.3 billion target, after winning a major order to build a large offshore platform at the beginning of the year.

World Maritime News Staff

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