Singapore-listed shipbuilder COSCO Corporation Singapore (COSCO) posted a net loss of SGD4.8 million (USD3.5 million) for the second-quarter 2015 due to bearish market conditions.
COSCO’s group turnover dropped 26% from a year ago to SGD854 million in the second quarter, mainly because of low earnings from shipyard and shipping revenues.
The company’s earnings from dry bulk shipping and other businesses also dipped 18% to SGD10.1 million in the second quarter because of lower chartering rates.
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Similarly, it incurred higher costs in the second quarter, attributable to an 13.8% increase in interest rates to SGD40.2 million from higher bank borrowings to fund shipyard operations.
COSCO vice-chairman and president Wu Zi Heng expects the business conditions for the rest of financial year of 2015 to be difficult for the company.
However, in a corporate release to the Singapore Exchange, he said the company remains focused in moving the operating conditions up the value chain and increase efficiency in operations.