Samsung Heavy Industries Co., South Korea’s third-largest shipbuilder, reported an operating loss of 1.55 trillion won ($1.3 billion) in the second quarter, far worse than the 343 million won loss analysts were expecting.
The company’s second-quarter net loss was 1.15 trillion won, compared to the 28 billion won profit that analysts were anticipating.
South Korea’s biggest shipyards are struggling with fewer orders and growing debt as low freight rates discourage ship owners from making agreements for new vessels. They’ve also been hit as a bet they made on deep-sea oil rigs beginning in 2010 has been undercut by the sharp fall in crude oil prices over the past year.
Samsung Heavy shares rose 1.1 percent Wednesday to 14,200 won before the earnings release.