SINGAPORE (Feb 24): Cosco Corp (Singapore) saw FY16 net loss widen to $976.1 million from a year ago despite 4Q net loss narrowing 13% to $657.4 million.
Revenue for both 4Q and FY16 fell to $409.8 million and $2.56 billion respectively, dragged down by lower shipyard and shipping revenue.
In FY16, turnover from shipyard operations decreased by 27.4% to $2.5 billion, owing to lower revenue contribution from ship repair, ship building and marine engineering. The group delivered 18 projects in total.
Turnover from dry bulk shipping and other businesses decreased by 22.6% to $30.5 million. The group scrapped one of its dry bulk carriers last October.
Interest expense increased by 34.7% to $224.8 million in 2016 due to higher bank borrowings used to fund shipyard operations.
In its outlook, Cosco said it continues to face challenging market conditions in the offshore marine, shipbuilding and shipping industry.
Shares of Cosco closed at 28 cents before the results announcement.
