Cosco crashes into the red with $570m net loss in FY15

Blame it on shipyard, shipping segments’ weak performance.

Cosco’s turnover for shipyard and shipping operations took a battering in FY15 as the company sank into the red with a net loss of $570m in FY15, and $483.8m in 4QFY15.

According to the company’s media release, group turnover for the financial year plummeted 17.4% to $3.5b in FY15 on back of the pullback in shipyard and shipping revenue.

Turnover from shipyard operations tumbled 17.3% to $3.5b due mainly to tapered revenue from marine engineering, partially offset by an uptick in revenue from shipbuilding and ship repair. Over FY15, Cosco delivered 21 projects that comprise six platform vessels, nine bulk carriers, two anchor handling tug supply vessels, one oil tanker, one floating accommodation unit, and two semi-submersible accommodation vessels.

Meanwhile, waning charter rates resulted in turnover from dry bulk shipping and other businesses taking a 25% nosedive to $39.4m.

The company asserts that it will capitalise on the downturn to improve capabilities for long-term sustainable growth in its offshore marine engineering and shipbuilding operations, amidst expectations for the ongoing down-cycle to persist and worsen in 2016.