DSME Plunges 30% after Media Report on Huge Losses

first_imgzoom Shares in the South Korean Daewoo Shipbuilding & Marine Engineering (DSME) plummeted by the daily permissible limit of 30% on Wednesday, following a media report that the company had amassed around KRW 2 trillion (USD 1.8 billion) of losses that have not yet been booked, according to local media. Shares of one of the world’s largest shipbuilders traded at KRW 8,750 yesterday, the lowest in nearly seven years. DSME is expected to report huge losses in the second quarter of FY2015 due to a decline in orders amid a global economic slump.The shipbuilder is also expected to report losses arising from the construction of previously ordered, low-priced ships and offshore facilities, which reportedly have not been booked yet. Low oil prices have negatively affected the number of orders for drillships and offshore facilities, as international oil majors are shying away from new orders and cutting their capital expenditure.DSME has launched an internal investigation to look into the possible causes of the expected losses. The shipbuilder’s creditors, including  Korea Development Bank, are said to be considering significant restructuring moves, which include the possibility of the sale of the company’s assets.Back in May, DSME’s new CEO Jung Sung-leep announced massive restructuring to trim down losses, which include focusing on core business and disposing of underperforming subsidiaries. DSME identified its core business to be construction of merchant vessels, specialized vessels, and offshore vessels and facilities.World Maritime News Stafflast_img read more


Province to Sign Information Sharing Agreement

first_imgNova Scotia signed an agreement today, Oct. 8, allowing provinces, territories and the federal government to share public health information to help prevent or limit illness. The Multi-lateral Information Sharing Agreement sets out what information can be shared and how it will be used. “This agreement strengthens public health across the country by formalizing existing relationships for sharing information,” said Health and Wellness Minister Leo Glavine. “For Nova Scotians, this means we’ll be better positioned to receive advance warning of public health threats that might be occurring in other parts of the country.” The agreement has already been signed by British Columbia, Nunavut, Northwest Territories, and the Public Health Agency of Canada. Other provinces are working towards signing as well. The agreement helps Canada meet its obligations under the International Health Regulations, such as reporting notifiable diseases and events which might constitute a public health emergency to other countries.last_img read more