SEOUL: The world’s biggest shipbuilder Hyundai Heavy Industries slumped to a loss of more than US$700 million last year, it reported Thursday, as demand for tankers plunged with the coronavirus epidemic hammering oil prices.
The South Korean group posted a net loss of 790 billion won (US$705 million) for the full year, compared with a profit of more than 115 billion won in 2019.
Sales declined 29% year-on-year, it said in a statement, blaming its “massive losses” on “a drop in oil prices and negative market conditions due to the coronavirus and currency rates”.
More than half the losses were incurred in the fourth quarter, but with vaccines being rolled out to fight the pandemic the firm expressed hope for a rebound in market conditions in 2021.
“With a market recovery in the fields of oil refinery, shipbuilding and construction machinery … we will strive to achieve profits,” it said.
Shares in Hyundai Heavy Industries closed 1% up in Seoul.