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CSIC reverses to a loss in first nine months

CSIC reverses to a loss in first nine months
China Shipbuilding Industry Corporation (CSIC) has reported a loss in the first nine months of 2015, impacted by the severe downturn in the shipbuilding industry.

From January to September 2015, the state-owned shipbuilder posted a deficit of RMB441.45m ($69.98m), a reversal from the profit of RMB2.14bn in the previous corresponding period.

Revenue during the period was registered at 39.77bn, an increase of 0.7% compared to the same period of last year.

“During the financial reporting period, the company underwent a challenging environment in the shipbuilding business. CSIC is facing low newbuilding prices, difficulties in newbuilding deliveries and tight cash flow, amid the global downturn in the shipping and offshore segments,” the Chinese shipbuilder said.

It added that the yard is also facing rising costs of materials and labour, leading to the loss seen in the first nine months.

Looking ahead, CSIC is expecting to record a loss for the financial year ending 31 December 2015.