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Cosco Corp sinks to H1 loss in tough market

Cosco Corp sinks to H1 loss in tough market
Cosco Corporation (Singapore) has reported a first half loss of SGD4m ($2.9m) as the group experienced challenges in its shipbuilding and shipping operations amidst unfavourable market conditions.

The loss in the six months ended 30 June 2015 was in line with expectations, and a reversal from the profit of SGD26.93m in the same period of 2014.

First half revenue was recorded at SGD1.84bn, down 16% year-on-year due mainly to decreases in shipyard and shipping contributions.

“The group expects present difficult and challenging business and operating conditions to persist. We will continue to focus on moving up the value chain and increasing efficiencies,” said Wu Ziheng, vice chairman and president of Singapore-listed Cosco Corp.

As at 30 June 2015, the group’s orderbook stood at $8.1bn with progressive deliveries up to 2017. New orders received in the first half included seven container vessels, one shuttle tanker, one module carrier, one tanker assist/emergency response/rescue/field support vessel, one research vessel and one FPSO conversion.

Cosco Corp said that while the group has accumulated substantial experience in the offshore marine segment, it will still face fresh operational challenges in the production of higher value products.

It also expects business conditions for the rest of 2015 to remain difficult.