KSOE Wades into the Red
South Korean manufacturer of oil tankers, cargo and passenger vessels, and warships, Korea Shipbuilding & Offshore Engineering (KSOE) reported its fourth-quarter net loss of 26.2 billion won (US$ 22.2 million), remaining in the red compared with a year ago.
The KSOE is an intermediate holding firm controlling Hyundai Heavy Industries and two other Hyundai Heavy Industries Group shipbuilders.
According to a regulatory filing, operating profit for the October-December period last year was 169.9 billion, compared with a loss of 246.4 billion won a year ago. Revenue rose 16.8 percent to 4.34 trillion won.
Meanwhile, a report in Korea Times said that it is expecting to gain momentum in its recovery this year as strengthened emission regulations will force shippers to replace their old vessels.
The report quoted Hyundai Heavy Industries Senior Vice President Kang Jae-ho saying that: "The demand for replacing old vessels is expected to grow quickly following the International Maritime Organization's strengthened nitrogen oxide (NOx) emission rules which took effect on Jan. 1."
According to the KSOE, a growing number of shippers are making inquiries over eco-friendly container and tanker vessels, while LPG carriers are showing solid orders from India, China and the U.S.