Comec books wider loss on higher impairment charges

CSSC Offshore & Marine Engineering (Group) Company (Comec) has reported a wider loss in the first half of its financial year 2015, due mainly to higher impairment charges.

The shipbuilding unit of state-owned China State Shipbuilding Corp (CSSC) posted a first half loss of RMB524.99m ($81.88m) compared to the deficit of RMB219.95m in the same period of last year.

The bigger loss came despite revenue going up by 28.6% year-on-year to RMB10.81bn as production volume increased.

Comec, formerly known as Guangzhou Shipyard International (GSI) before a restructuring, attributed the weaker first half results to losses on impairment of assets which soared to RMB230.13m compared to just RMB48.17m a year ago.

The Shanghai and Hong Kong-listed shipbuilder also took in lower investment income of RMB7.93m during the first half compared to RMB66.03m in the previous corresponding period.

“For the second half of this year, the company plans to complete an industrial production amounting to RMB14.02bn; it is expected to complete the construction of 50 vessels, the sale of 241 sets of shearing press, the production of 524 elevators and 21,702 tonnes of steel structure,” Comec said.

Last week, the company proposed to dispose of its land and property subsidiary GS Shipping for RMB3.53bn.
Source: Seatrde Maritime