Samsung Heavy shares undergo record plunge on loss forecast

Singapore

SAMSUNG Heavy Industries Co plunged the most on record in Seoul trading after forecasting surprise losses and announcing a share sale plan, underscoring the bleak outlook for the global shipbuilding industry.

The world's third largest shipbuilder said on Wednesday that it plans to raise 1.5 trillion won (S$1.8 billion) by selling new shares in a rights offering. Samsung Heavy - saddled with 3.3 trillion won of short-term debt - expects demand for new vessels and offshore projects to continue shrinking, and that will push the company into losses this year and next; compared with analyst estimates for a profit.