SHI Targets USD 705 Mn Loan, Ups Share Issue Mark

South Korean shipbuilder Samsung Heavy Industries (SHI) is looking to increase its short-term borrowings by KRW 750 billion (USD 705 million), the company said on Friday.

The move is being taken as financially-troubled SHI endeavors to bolster its liquidity.

Samsung said that it has reached an agreement with three borrowers to secure the capital, those being Korea Investment and Securities, NH Investment and Securities, and Mirae Asset Daewoo Securities.

In addition, the shipbuilder said it was moving forward with its rights issuing plan worth KRW 1.56 trillion (USD 1.47 billion). The rights offering target has been raised from previous KRW 1.5 trillion and the issuance is set to take place in April, 2018.

SHI expects to see operating profit in 2019 as it reaps the fruits of larger order intake and reduced fixed costs.

The improved demand is likely to result in USD 8 billion worth orderbook in 2018, the shipbuilder’s newly appointed CEO Nam Joon-ou said earlier this month, up from last year’s USD 6.9 billion.

Furthermore, SHI has set out to slash its operating losses this year, reducing them to KRW 240 billion (USD 230 million) from USD 490 billion reported in 2017.

Sales for 2019 are expected to reach around USD 6.9 billion against USD 7.4 billion from 2017, Yonhap informed.

World Maritime News Staff