SHI narrows Q2 loss on cost-cutting efforts

Samsung Heavy Industries (SHI) has narrowed its second quarter loss compared to a year earlier amid the shipbuilder’s ongoing cost-cutting measures and restructuring, reports said.

The South Korean shipbuilder posted a second quarter loss of KRW212.4bn ($189.6m), significantly narrowing from the wider deficit of KRW1.1trn for the same period of 2015, Yonhap reported.

The three-month revenue, however, jumped by 89% year-on-year to KRW2.7trn.

SHI’s KRW1.5trn self-restructuring program included cutting jobs, getting executives to return part of their salaries, selling of shares, suspending part of its yard facilities, and disposing of non-core assets.

The dire state of the global shipbuilding and offshore markets has left Korean shipbuilders struggling with a dearth of new orders and mounting debts.

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