Offshore and shipbuilding markets to worsen

The difficult and challenging operating conditions in the offshore and shipbuilding segments are expected to persist or worsen, according to Cosco Corp (Singapore).

News ID: 68051

Date: 20 August 2016 - 11:54

According to MANA, Wu Ziheng, vice chairman and president of the company, commented: “The offshore marine industry remains weak due to persistently low crude oil prices. The shipbuilding industry continues to falter on overcapacity amidst a weak global economy.”
Under such challenging conditions, the company has had to handle some customers delaying accepting delivery of projects upon completion and the possibility that more customers will seek to delay delivery of projects or seek deferment of payment schedules.
Revenue for the first six months was posted at SGD1.49bn, down 19% from SGD1.84bn in the year-ago period.
As at 30 June 2016, Cosco Corp’s orderbook stood at approximately $7.6bn with progressive deliveries up to 2018. The group’s dry bulk shipping fleet comprises panamax and handymax carriers.