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HHIC posts sixth consecutive year of losses

HHIC posts sixth consecutive year of losses
Hanjin Heavy Industries & Construction (HHIC) has posted its sixth consecutive year of net loss in 2015 as the shipbuilder incurred provisions from a cancelled shipbuilding contract.

The loss for last year was recorded at KRW228.11bn ($189.84m), a reduction from the larger loss of KRW319.67bn in 2014.

The South Korean shipbuilder’s full year revenue, however, climbed by 23.6% year-on-year to KRW3.12trn.

In a filing to the stock exchange, HHIC attributed the loss mainly to incurred provisions relating to a contract cancellation, without specifying the contract details. It also blamed running provisions from unproductive construction facilities.

Last month, HHIC announced that it is seeking to restructure its debts with its creditors under a voluntary agreement. Creditors of the yard subsequently agreed to provide KRW130bn worth of emergency funds, as well as temporarily suspending its debt repayment obligations.