Samsung Heavy Industries Post Quarterly Loss

Seoul-listed South Korean shipbuilder Samsung Heavy Industries (SHI) sunk into the red in the second quarter, on increased costs and one-off losses.

SHI said in a regulatory filing that it posted a net loss of 142.7 billion won ($126 million) in the second quarter, compared with a net profit of 22.7 billion won a year earlier.

The world's third-biggest shipbuilder by sales  blamed increased fixed costs and losses stemming from a delay in the delivery of a drill ship to Ocean Rig.

Operating losses reached 100.5 billion won in the second quarter, shifting from a net profit of 20.6 billion won a year earlier. Sales fell 41.4 percent to 1.34 trillion won over the cited period.

According to a report in Yonhap, Samsung Heavy said in last December that its operating losses in 2018 could narrow to 240 billion won from an estimated 490 billion won in 2017.

In a separate press release, SHI said that it has won a deal for the construction of three special-purpose ships worth KRW 415.7 billion (USD 366.1 million).

The shipbuilder said the order was received from an undisclosed North American shipowner. The delivery of the ships is set to be completed by the end of 2020.