S Korea's Big 3 shipbuilders in deep water with deep-sea oil rigs
They report far worse than expected combined Q2 operating loss of 4.8t won
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Seoul
THE world's three biggest shipbuilders posted a combined 4.8 trillion won (S$5.6 billion) in operating losses in the second quarter, paying the price for a failed foray into deep-sea oil rigs.
Hyundai Heavy Industries, Daewoo Shipbuilding & Marine Engineering Co and Samsung Heavy Industries Co - South Korea's Big Three shipbuilders - all reported losses on Wednesday that were far worse than analysts had estimated. The root cause: a venture into offshore oil rigs starting around 2010 to avoid direct competition with Chinese shipbuilders, who had the advantage of cheap labour to make low-profit tankers.
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