HHI’s Loss Widens amid Ordering Slump

World’s top shipbuilder Hyundai Heavy Industries (HHI) posted a widened net loss in the first quarter of 2015 recording a net loss of KRW 125.2 billion (USD  117 million), 37.6 % drop year-on-year.

HHI said that its shipbuilding activity was considerably affected by a slump in newbuilding orders coupled with its restructuring activities aimed at cutting costs.

The shipbuilder recorded 9.6 pct fall in sales amounting to KRW 12.2 trillion and an operating loss of KRW 192 billion.

HHI said that the sales decreased due to fall in oil prices in refinery segment and decline in construction segment due to the global economic downturn.

Hyundai’s counterpart Samsung Heavy Industries (SHI) had a better start of the year with to KRW 26.3 billion operating profit in the first quarter, recovering from a KRW 362 billion loss from last year.

SHI had a net income of KRW 10.9 bn, rebounding from KRW 272.4 billion loss from 2014.

World Maritime News Staff