Samsung Heavy Industries plans multimillion dollar fundraiser
Despite sitting on cash pile, South Korean shipbuilder posts unexpected losses and plans $888 fundraiser.
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.
