Daewoo Shipbuilding Executives Offer to Resign After Record Loss

Daewoo Shipbuilding & Marine Engineering Co. said 13 executives and advisers have offered to resign as the world’s second-largest shipbuilder restructures after posting its biggest quarterly loss.

The resignations won’t impact the company’s seven-member board, the company said in an e-mailed statement.

Daewoo Shipbuilding will sell noncore subsidiaries and assets to focus on improving competitiveness in its shipbuilding operations after it reported a 2.4 trillion won ($2 billion) loss in the second quarter. Its key creditor and biggest shareholder, Korea Development Bank, is re-evaluating the shipbuilder.

Daewoo Shipbuilding posted losses because of delays in completing four oil rigs ordered from Songa Offshore SE. The company has said it also will sell part of a stake in a Chinese shipyard where it makes components for vessels, and will reduce its business at a shipbuilding venture in Romania.

The world’s three biggest shipbuilders -- the others are South Korea’s Hyundai Heavy Industries Co. and Samsung Heavy Industries Co. -- posted combined losses of 4.8 trillion won in the second quarter because of delays in delivering deepwater drilling and production facilities.

Shares of Daewoo Shipbuilding fell 0.2 percent to 6,640 won as of 10:53 a.m. in Seoul trading. The stock has dropped 64 percent this year, the worst performer on the Kospi 200 Index.

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