Brief: Cosco Corporation (Singapore) qtrly net loss S$312.96 mln; parent to acquire 3 shipyards from co

COSCO Shipping International (SINGAPORE)

24/02/2017 09:07

Feb 24 (Reuters) - Cosco Corporation (Singapore) Ltd 
 COSC.SI  
    * Qtrly turnover s$ 409.8 million versus s$ 725.5 million 
last year 
    * qtrly net loss attributable s$312.960 million versus loss 
s$ 483.8 million last year 
    * no dividend has been declared/recommended by directors in 
fy 2016 
    * "order book continues to be subject to revision from any 
new, cancellation, variation or scheduling of orders that may 
arise" 
    * expects operating margins on new ship building and 
offshore contracts to continue facing severe downward pressure 
    * group expects difficult and challenging business and 
operating conditions facing shipping, shipbuilding to persist 
and even worsen 
    * "expects competition in offshore and shipbuilding sectors 
to remain keen even as crude oil prices continue to remain low" 
    * "increasing number of group's customers may be unable to 
meet their contractual payment obligations to group" 
    * informed by its parent co of proposed restructuring is to 
centralise operations and management of shipyard businesses 
    * parent group plans to acquire co's equity interests in 
Cosco Shipyard Group , Cosco (Nantong) Shipyard And Cosco 
(Dalian) Shipyard 
    * "plans relating to proposed acquisition will be further 
reviewed and determined after further necessary work" 
    * "informed by its parent company that it will remain 
supportive of company's future development" 
    * 2017 will remain challenging for group 
    * "orders for two floating accommodation units (hull number 
n381 and n675) have been terminated" 
    * continues to face challenging market conditions in 
offshore marine, shipbuilding and shipping industry 
    * "may consider scrapping more dry bulk carriers in 2017" 
 
Source text for Eikon:  ID:nSNZ5TF9gZ  
Further company coverage:  COSC.SI  
 
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