Daewoo Shipbuilding & Marine Engineering loses 470.1 billion won in the first quarter of this year…

Daewoo Shipbuilding & Marine Engineering (DSME) announced on the 16th that it recorded an operating loss of 470.1 billion won in the first quarter of this year on a consolidated basis. This is more than double the loss of 212.9 billion won in the same period last year.

Sales increased 13% year-on-year to KRW 1.24 trillion and net loss was KRW 491.8 billion.



Daewoo Shipbuilding & Marine Engineering explained, “This is because the provision for construction losses of about 400 billion won was reflected due to an additional increase in material prices including steel and outsourcing costs due to a sharp rise in raw material prices.”



However, it is positive that the company has secured a stable job equivalent to three years’ worth. Daewoo Shipbuilding & Marine Engineering (DSME) achieved more than half of this year’s goal by winning $4.61 billion in orders in just four months since the start of this year. All 18 vessels ordered are dual-fuel propulsion vessels with high added value, which is expected to help improve earnings in the future.



An official from Daewoo Shipbuilding & Marine Engineering said, “The shipbuilding industry continues to experience difficulties due to the increase in shipbuilding costs due to rising steel and equipment prices and outsourcing costs. We will do our best to improve profitability in the future through expansion, cost reduction, and productivity improvement.”