Daewoo Shipbuilding & Marine Engineering (DSME) reported a net loss of 120.4 billion won ($90 million) in the first quarter, larger than anticipated.

The figure fell short of the market expectation at a loss of 62 billion won, compiled by FnGuide.

DSME announced that its operating loss for the first quarter reached 62.8 billion won, down by 86.6 percent compared to the same period last year. It missed the market expectation of 38.9 billion won.

Additionally, the company reported sales of 1.44 trillion won compared to the market consensus of 1.78 trillion won.

Despite a 15.6 percent on-year growth in sales, the shipbuilding company has registered losses for ten consecutive quarters since the fourth quarter of 2020.

However, DSME managed to significantly reduce the scale of its losses, considering that the operating loss in the previous year’s first quarter amounted to 470.1 billion won.

“Anticipated cost increases, including higher outsourcing expenses, resulted in an operating loss of approximately 60 billion won,” the company said.

DSME, which is currently undergoing an acquisition and merger by Hanwha, holds a positive outlook.

“We have a backlog of orders worth over 40 trillion won spanning more than three years,” DSME said. “Notably, the LNG carrier segment, known for its high profitability, accounts for half the total order backlog. We expect this segment to enhance sales growth and profitability significantly.”