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(LEAD) Samsung Heavy's loss widens in Q2 on increased costs

All News 17:08 July 31, 2020

(ATTN: UPDATES with details, photo throughout; RECASTS lead)

SEOUL, July 31 (Yonhap) -- Major shipyard Samsung Heavy Industries Co. said Friday that its net loss widened in the second quarter from a year earlier due to increased costs stemming from delays in shipbuilding projects

Its net loss came to 704.3 billion won (US$591.2 million) in the April-June period, compared with a net loss of 309.4 billion won a year earlier, the company said in a regulatory filing.

Operating loss widened to 707.7 billion won from 56.3 billion won, Samsung Heavy said.

Sales reached 1.69 trillion won, down 4.5 percent in the second quarter from 1.77 trillion won a year earlier.

This photo, provided by Samsung Heavy Industries Co., shows a floating liquefied natural gas (FLNG) vessel at its shipyard on the country's southeastern Geoje Island on Nov. 27, 2019. (PHOTO NOT FOR SALE) (Yonhap)

"Operating loss was made by increased one-off factors, like a drop in drill ship prices stemming from decreasing oil prices and the coronavirus pandemic," the company said in a separate statement.

It also said increased costs caused by delays in offshore plant projects were responsible for the increased losses.

Samsung Heavy Industries projected its earnings to improve in the second half of the year on more deals for large-sized liquefied natural gas (LNG) projects despite remaining uncertainty from the COVID 19.


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