Cosco Issues Profit Guidance, Cites Low Oil Prices for Expected Net Loss
Cosco Corporation (Singapore) Limited issued Wednesday a profit guidance on the financial results for the fourth quarter of 2015 (4Q 2015) and for financial year 2015 (FY 2015) ending Dec. 31.
"The Board is of the view that the 4Q 2015 Results and its FY 2015 Results will show a significant net loss as compared to earnings recorded in the corresponding period of the previous financial year," the Chinese shipyard said in a press release.
Among the factors cited by Cosco for the anticipated net loss is "the continuing depressed state of crude oil prices which has had an adverse impact on the global offshore marine industry ... and the slump in the shipbuilding market which has negatively impacted the Company’s shipyards."
The adverse market conditions in the fourth quarter have led the company’s shipyards to incur writedowns of certain inventory and made provisions for impairment of trade receivables for certain contracts, which are deferred or may potentially be cancelled.
Cosco will provide details of its financial performance when it announces the FY 2015 results scheduled for Feb. 19, 2016.
WHAT DO YOU THINK?
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.
- Cosco Delivers 2 Jackups to Foresight Group and a PSV to a European Buyer (Aug 25)
- Cosco Incurs $27M Net Loss in 2Q 2016, Revenues Fell 11% to $566M (Aug 08)
- Cosco, KS Energy May Sell KS Orient Star 2 if Offer Covers Building Cost (May 17)