Cosco reports Q1 loss, cites grim outlook

Singapore

THE gloom continues for Chinese shipbuilder Cosco Corporation (Singapore), which reported a net loss of S$14.4 million in its latest quarterly results and forecast worse operating conditions. Significantly higher interest expenses from more debt incurred to fund shipyard operations had dragged down the bottom line, wiping out higher gross profit achieved in the quarter.

Meanwhile, new contracts are being secured at low values due to the weak global economy and depressed shipbuilding and offshore markets, the company said. Customers are also delaying deliveries and payments.