Cosco Shipping loses $20.8m in Q2

A weak O&M industry is causing it to sink.

Cosco Shipping International (Cosco) still scrambles to swim back to the surface after it reported a loss worth $20.8m in Q2, 43% lower than last year’s $36.8m.

According to Cosco’s financial report, a weak offshore marine industry continues to harm the company due to low crude oil prices over the past few years.

Turnover also decreased by 31% from $762.9m to $524.7m, no thanks to smaller shipyard revenue.

Turnover from Cosco’s shipyard operations also fell 31.6% to $516.1m due to lower contribution from ship repair, ship building, and marine engineering.

However, turnover from dry bulk shipping and other businesses still jumped by 4.7% YoY from $8.3 million to $8.7 million. The current short-term rates were higher than the charter rates secured in last year’s Q2.

As of 30 June, the group’s gross order book is at around $7.9b (US$5.8b), which includes modules of drillship and FPSO contracts which worth around $1.2b (US$951m).