CSSC Offshore & Marine Engineering Group (COMEC), said its loss widened 139% year on year (y/y) to CNY525.0 million (USD82.0 million) in the first six months of 2015 because of write-downs on its orderbook.
For the same period, COMEC took provisions of CNY268.9 million for its orderbook in the depressed shipbuilding market, a stock filing of the company said on 27 August.
The company’s revenue rose 29% y/y to CNY10.8 billion during the same period owing to higher output.
The company delivered a total of 23 newbuilds, COMEC added.
In addition, its shipbuilding segment’s gross profit margin fell 15% y/y to 2.45% as cost growth outpaced revenue growth. The gross profit margin of its ship repairing segment stood at 3.68%.
COMEC was formerly known as Guangzhou Shipyard International before completing the acquisition of CSSC Huangpu Wenchong Shipbuilding in the first half of 2015. The results for the first half of 2015 and 2014 has been adjusted to reflect the acquisition.