Cosco in Red
Chinese shipbuilder Cosco Corporation (Singapore) has suffered a net loss of S$ 36.8 million (US$ 27.4 million) in the second quarter of 2016.
The net loss for the same quarter a year earlier stood at S$ 4.7 million. The widened quarterly loss was attributed to losses in the company’s shipyard and shipping operations.
A report in the Strait Times say that the sluggish marine engineering and shipping markets continued to weigh on revenue, which slid 11 per cent for the three months ended June 30 to S$762.9 million.
"The bearish industry outlook looms large in the near term as external weaknesses beyond our control continue to brew across our markets," said the company's vice chairman and president Wu Zi Heng.
The worst is yet to come, said Cosco.
"With the macroeconomic headwinds at the forefront of its concerns, the group expects these difficult and challenging business and operating conditions to persist or even worsen. As such, 2016 will remain a very difficult year for the group," it said.