Samsung Heavy slashes 2016 operating loss

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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 KRW147.2 million (USD126,200), against an operating loss of KRW1.5 billion (USD1.28 million) recorded a year earlier.

The data provided in the filing shows that the shipbuilder also cut its net loss by some KRW1 billion, which represents an improvement of 88.5 percent.

At the end of 2016 the conglomerate’s net loss stood at KRW138.8 million, compared to a net loss of KRW1.2 billion seen in the full year 2015.

SHI’s revenues improved to KRW10.4 billion from KRW9.7 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 USD6 billion, from last year’s USD5.3 billion target, after winning a major order to build a large offshore platform at the beginning of the year.



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