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DSME rewrites 2015 results to post reduced loss

DSME rewrites 2015 results to post reduced loss
Daewoo Shipbuilding & Marine Engineering (DSME) has restated its 2015 financial results and reposted a loss that is reduced close to KRW2trn ($1.7bn), after auditors pointed out the error, reports said.

DSME had earlier announced a 2015 net loss of KRW5.13trn, only to adjust the loss to KRW3.31trn after an audit pointed out that a portion of losses should be dated 2013 and 2014, The Korea Herald reported.

The loss for 2015 was mainly attributed to write-downs on offshore projects under construction and order cancellations.

The local news report mentioned that South Korea’s Financial Supervisory Service (FSS) has gathered information that DSME and its auditor have failed to set aside reserves for losses from failed projects for previous years.

Financially-shaken DSME has been struggling to stay afloat after its business was badly hit by the plunge in oil prices that slashed activities in the offshore oil and gas market.

The shipbuilder is dismissing 12,000 staff over the next two years to bring its workforce to down 30,000 as part of its austerity measures to cut costs.