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CSIC warns of massive loss for 2015

CSIC warns of massive loss for 2015
China Shipbuilding Industry Corp (CSIC) has warned of a deep loss for 2015 due to the depressed state of the shipbuilding industry.

The state-owned shipbuilding group projected a 2015 deficit of RMB2.5bn ($380m) to RMB2.8bn, it announced to the Shanghai Stock Exchange. The anticipated net loss compared to a profit of RMB2.28bn in 2014.

CSIC said that the global shipbuilding market is facing a challenging operating environment with low newbuilding orders and declining contract prices. The falling crude oil prices have also led to reduced demand for offshore vessels and equipment.

Meanwhile, CSIC is believed to be in talks with compatriot China State Shipbuilding Corp (CSSC) over a merger deal, as part of Beijing’s efforts to consolidate the shipbuilding industry suffering from excess capacity and low utilisation.