Shipbuilding and dry bulk shipping company Cosco Corp (Singapore) expects to post a loss in the third quarter ended September 30, 2015 compared to a profit recorded in the same period a year earlier.
The financial pain comes on the back of the offshore slump, shipbuilding slowdown and highly depressed dry bulk shipping market.
As a result, the group incurred higher costs for a few delayed projects as well as write-down of certain inventory. Provisions for impairment of trade receivables have also been made.
Provisions for impairment of trade receivables have also been made, and exact details of the company’s financial performance for the 3Q2015 will be disclosed on November 12, 2015.
“As a result of adverse market conditions, in third quarter ended 30 September 2015, the Company’s shipyards incurred higher costs for a few delayed projects as well as writedowns of certain inventory. Provisions for impairment of trade receivables have also been made,” the company said.
Cosco’s shipyards incurred higher costs for a few delayed projects as well as writedowns of certain inventory in the quarter ended September 30, as a result of adverse market conditions, according to the company.
Cosco Corp owns a 51% stake in Cosco Shipyard Group. The company plans to release its Q3 results on 12 November, and its stock is currently suspended due to the ongoing merger talks between its parent Cosco Group and China Shipping.