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Cosco Corp warns of full year 2015 loss

Cosco Corp warns of full year 2015 loss
Cosco Corporation (Singapore) Limited has warned investors of a full year net loss amid the ongoing slump in the dry bulk shipping and shipbuilding markets.

Singapore-listed Cosco Corp said the loss will be recorded for the full year ending 31 December 2015, and the fourth quarter results will also show a deficit, compared to profit recorded in the previous corresponding periods.

The company said the slump in the shipbuilding market has negatively impacted the company’s shipyards, and the languid dry bulk shipping market has brought great pressures to its dry bulk fleet operations.

The continuing depressed state of crude oil prices also has an adverse impact its offshore marine business.

“As a result of adverse market conditions, in fourth quarter ending 31 December 2015, the company’s shipyards incurred writedowns of certain inventory and provisions for impairment of trade receivables for certain contracts, which are deferred or may potentially be cancelled,” it stated.

Cosco Corp is expected to announce its full year 2015 results on 19 February 2016.

In the third quarter ended 30 September 2015, Cosco Corp posted a loss of SGD82.12m ($57.88m), as against a profit of SGD7.15m in the same period of the previous year.