Daewoo Shipbuilding & Marine Engineering Co., a major South Korean shipyard, said it suffered over 5.1 trillion won (US$4.24 billion) in losses last year due to increased costs from a delay in the construction of offshore facilities and order cancellations amid a prolonged slump in the global shipbuilding sector.
Net losses came at 5.13 trillion won last year, shifting from the previous year’s profit of 33 billion won, the company said in a regulatory filing.
Sales dropped 23 percent on-year to 12.97 trillion won, while its operating loss stood at 5.51 trillion won, a turnaround from an operating income of 471 billion won the previous year.
Daewoo Shipbuilding said it reflected 400 billion won in losses stemming from its asset sales, while not fully booking receivables on its balance sheets.
The shipyard said it is expecting an improvement during the first quarter of the year.
During the fourth quarter of last year, Daewoo Shipbuilding suffered a net loss of 979 billion won and an operating loss of 973 billion won.