|
Daewoo expects profit to increase |
|
|
|
Monday, 25 January 2010 |
 Daewoo Shipbuilding & Marine Engineering Co., the world's second-largest shipbuilder, expects operating profit to rise to 1 trillion won (US$864 million) this year as it builds more drill ships and offshore units.
Sales may increase to 12.4 trillion won this year, the Seoul-based
company said today in a regulatory filing. The shipbuilder didn't
provide estimates for last year's operating profit and sales. The
company forecast that orders may almost triple to US$10 billion this
year from US$3.8 billion in 2009 as oil companies including Chevron
Corp. and Petroleo Brasileiro SA buy more offshore platforms and
refineries to increase fuel exploration and production. Shipyards'
orders for new vessels have slumped since the third quarter of 2008
because of a credit crunch.
"While the general thinking is that the shipbuilding and shipping
industries have hit a bottom, it's too early to say whether they are on
the road to recovery," Nam Sang Tae, chief executive officer of Daewoo
Shipbuilding, said today in a New Year's speech to employees.
"Competition is going to become much fiercer."
The shipyard will announce 2009 earnings in February. The company's net
income in the first nine months more than quadrupled to 494.6 billion
won and operating profit rose 10 percent to 484.2 billion won. Sales
increased 25 percent to 9.27 trillion in the nine-month period.
The shipyard plans to invest more than 600 billion won this year to
boost its wind-power and emission-reducing businesses, Nam said in the
speech.
Korea Development Bank and Citigroup Inc. last month were selected to
arrange a sale of Daewoo Shipbuilding this year after an attempt was
scrapped last year. The state-owned lender is the shipyard's biggest
shareholder.
Source: Bloomberg
|
Rss
Online - Contact Send us your news
