SEOUL–Daewoo Shipbuilding & Marine Engineering Co.’s (042660.SE) net profit in 2012 plunged 82%, primarily reflecting the decision it made in 2009 to book orders for ships at lower rates to stay afloat in the aftermath of the financial crisis.
In a further setback, the world’s third-largest shipbuilder by sales also lowered its order target for 2013, faced by a supply glut in the shipping industry and a fragile global economy. For the year, DaewooShipbuilding has set an order target of $13 billion, down 9% from its actual achievement of $14.3 billion last year.
Full-year net profit sharply declined to 137 billion Korean won ($125 million) from 743 billion won a year earlier, the shipbuilder said in a regulatory filing. Shipbuilders take years to deliver on orders and their financial accounts are based on the prices at which they take the order.
“Investment losses and provisions for the operation of its overseas unit in Romania dealt a heavy blow to the bottom line,” a company spokesman said by telephone, without elaborating.
In 1997, the company acquired a 51% stake in a Romanian shipbuilding company for 45 billion won. The remaining stake is held by a state-run company in Romania.
Operating profit also fell 55% to 451.6 billion won from 1.013 trillion won. Sales rose 2.5% to 12.565 trillion from 12.258 trillion won.
The United States Trade Representative (USTR) has announced the launch of an investigation into alleged unfair trade practices by China in the shipbuilding, maritime, and logistics sectors. The probe was...
Virginia-based energy company Dominion Energy has announced the launch of the first U.S.-built and Jones Act-compliant offshore wind turbine installation vessel, the Charybdis. A 472-foot vessel is being built at the...
Emerging U.S. offshore wind contractor, Kalypso Offshore Energy, has signed a Letter of Intent (LOI) with maritime technology leader, Royal IHC, to construct the first Jones Act-compliant Cable Lay Vessel...
April 15, 2024
Total Views: 1286
Why Join the gCaptain Club?
Access exclusive insights, engage in vibrant discussions, and gain perspectives from our CEO.
This website uses cookies to improve your experience while you navigate through the website. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may affect your browsing experience.
Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.
Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.