S Korea’s Samsung Heavy Falls by a Quarter on Loss Forecast

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Samsung Heavy Industries sheds more than a quarter of its value on Wednesday after announcing plans to raise Won1.5tn ($1.4bn) in a sale of new shares and flagging operating losses for this year and next, the Financial Times reported. The announcement by the world’s third-biggest shipbuilder damped hopes that big South Korean shipyards are finally emerging from a prolonged slump that has resulted in billions of dollars in losses over the past two years. Samsung Heavy forecast an operating loss of Won490bn ($449m) for this year and Won240bn next year amid shrinking demand for its new vessels and offshore energy projects. In a regulatory filing, the company said its rights issue would be completed by May 2018. In response, shares in the company sank as much as 27 per cent, to their lowest point since December 2016. The bleak outlook hit shares in rival shipyards, with Hyundai Heavy Industries falling 4.3 per cent and Daewoo Shipbuilding and Marine Engineering shedding 3.3 per cent in a broader market that was off 0.3 per cent. Read more. (Subscription required.)