DSME shares slide 30% as offshore losses stack up

DSME shares slide 30% as offshore losses stack up

Seoul: The collapse in offshore activity has taken a massive hit at giant South Korean yard Daewoo Shipbuilding & Marine Engineering (DSME)’s share price, which fell today by the maximum trading limit of 30%, slumping to KRW8,750, its lowest level for seven years.

Local newspaper Chosun Ilbo reported DSME is expected to report significant losses of up to $1.75bn for the second quarter.

In the first quarter of this year, DSME swung to a KRW172bn net loss — its first in eight years. Second quarter results are due to be published on August 14.

DSME’s high net debt ratio, which stood at 160% at the end of 2014, is also worrying analysts and investors.

Sam Chambers

Starting out with the Informa Group in 2000 in Hong Kong, Sam Chambers became editor of Maritime Asia magazine as well as East Asia Editor for the world’s oldest newspaper, Lloyd’s List. In 2005 he pursued a freelance career and wrote for a variety of titles including taking on the role of Asia Editor at Seatrade magazine and China correspondent for Supply Chain Asia. His work has also appeared in The Economist, The New York Times, The Sunday Times and The International Herald Tribune.

Related Posts