Shipbuilder Cosco reports Q2 net loss of S$36.8 million

Containers from COSCO at a port in Shanghai, China, Feb 17, 2016.
Containers from COSCO at a port in Shanghai, China, Feb 17, 2016.PHOTO: REUTERS

SINGAPORE - The gloom continues for Chinese shipbuilder Cosco Corporation (Singapore), which reported a second quarter net loss of S$36.8 million, due to losses in its shipyard and shipping operations. This following a net loss of S$4.8 million in the same period last year.

The sluggish marine engineering and shipping markets continued to weigh on revenue, which slid 11 per cent for the three months ended June 30 to S$762.9 million.

"The bearish industry outlook looms large in the near term as external weaknesses beyond our control continue to brew across our markets," said the company's vice chairman and president Wu Zi Heng.

As at June 30, its order book stood at about US$7.6 billion (S$10.1 billion) with deliveries up to 2018.

Loss per share for the quarter was 1.64 Singapore cents, from a loss per share of 0.21 cent a year ago. Net asset value per share was 32.49 cents as at June 30, down from 36.71 cents as at Dec 31 last year.