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HHI sees losses widen to $130m in Q1

HHI sees losses widen to $130m in Q1
South Korea’s Hyundai Heavy Industries (HHI), the world's largest shipbuilder, has announced a wider loss in the first quarter compared to a year ago, amid the shipbuilding industry recession.

HHI reported a net loss of KRW138.8bn ($129.9m) in the first quarter, a deeper deficit compared to the loss of KRW58.4bn in the same period of last year.

HHI attributed the heavy loss to a KRW161.4bn payment of retirement bonuses, cost overruns due to delays in building specialised vessels, and changes in offshore projects such as the Gorgon work.

The company’s industrial plant and engineering business, however, turned profitable while the refinery business posted strong margins.

Revenue for the first three months dropped by 11.7% year-on-year to KRW12.23trn.

In 2014, HHI was hit by a KRW2.21trn loss amid the tough market of lower shipbuilding contract prices and higher operating costs.

TAGS: Shipyards