Daewoo Shipbuilding pays big price for delay in rig delivery

Seoul

THE frigid waters close to the Arctic Circle may hold answers to why shares of Daewoo Shipbuilding & Marine Engineering Co have plunged by more than a third since the middle of last week.

That's where four oil rigs the world's second-biggest shipyard is building for Songa Offshore SE will be deployed, in the North Sea and Barents Sea. Ordered in 2011, the first rig was delivered just last month, about a year behind schedule, a delay that analysts say has squeezed Daewoo Ship's cash position.