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Samsung Heavy Q2 net loss widens on one-off cost

All News 16:10 July 26, 2019

SEOUL, July 26 (Yonhap) -- Samsung Heavy Industries Co., a major South Korean shipyard, said Friday its net losses widened in the second quarter due to one-off costs related to covering a damage suit.

Samsung Heavy's net losses amounted to 309.4 billion won (US$261 million) in the April-June period, more than double the loss of 142.7 billion a year earlier, the company said in a regulatory filing.

Operating losses, however, narrowed to 56.3 billion won from 100.5 billion won over the cited period, and sales jumped 31.5 percent on-year to reach 1.77 trillion won, it said.

The shipyard said allowances set aside for possible compensation to U.K.-based offshore drilling company Ensco made a sharp dent in the bottom line. In May, a London arbitration court ordered Samsung Heavy to pay US$180 million to Ensco over the contract cancellation with a Brazilian customer.

Samsung Heavy already filed an appeal with London's high court on the case.

The company said its profitability is likely to increase in the second half due to a decline in fixed costs and rising sales.

Samsung Heavy said it has so far secured $3.3 billion worth of orders this year, achieving 43 percent of its annual target of $7.8 billion.


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