Samsung Heavy Industries plans multimillion dollar fundraiser

Image: SHI.
Image: SHI.

Despite sitting on cash pile, South Korean shipbuilder posts unexpected losses and plans $888 fundraiser.

Publisert

Samsung Heavy Industries (SHI) has posted an unexpected loss in the first quarter and has announced that it has plans for a KRW 1trn ($888m) fundraising drive.

SHI is reportedly sitting on KRW 1.2trn in cash, but executives at the firm said a rights offering would improve the shipbuilder’s balance sheet with an improved debt-to-equity ratio.

Against expectations the company reported a first quarter operating loss of KRW 507bn against a consensus estimate of a KRW 43bn profit.

A recent hike in the cost of provisions, particularly the price of steel plate, has been blamed for the figures.

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