Daewoo logs net loss of $1.4bn as sales fall and raw material prices soar

South Korea’s Daewoo Shipbuilding & Marine Engineering (DSME) slumped to a heavy loss of KRW 1.7trn ($1.4bn) in 2021 — its first since 2016, according to a regulatory filing.

The Okpo-based shipyard posted an operating loss of KRW 1.8trn for the period ending 2021 after sales plunged by 36% to KRW 4.5trn.

Daewoo cited a sharp fall in sales — stemming from weak orders and sales prices in previous years — and an increased reserve set aside for losses amid rising raw material prices as the key reasons for the loss.