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.