Samsung Heavy Industries has fallen to a bigger loss in the fourth quarter after a client was late paying a bill.
The South Korean shipbuilder said the net deficit to 31 December was KRW 124.2bn ($104m), compared to a KRW 105.7bn loss a year earlier.
The company made a provision of KRW 67bn due to the delay in payment from an unnamed customer.
The operating loss of KRW 215bn was up from KRW 133.7bn in the same period of 2018.
But revenue rose to KRW 2.15 trn in the fourth quarter, from KRW 1.36 trn a year ago.
The annual loss widened to KRW 1.11 trn, versus KRW 388.2bn for 2018.
Order target raised
The yard group has set an order target of $8.4bn this year. This is up 18% from the value of actual new deals won in 2019.
Its shares dropped 1% to KRW 6,580 in Seoul following the results announcement.
The yard received better news last month when an arbitration tribunal in London found in its favour over an order placed in 2013 by Pacific Drilling..
Samsung could be in line to receive up to $320m in compensation over the cancelled drillship newbuilding contract.
Pacific Drilling notified Samsung that it would terminate the $517m order, claiming that the yard had delayed the construction process and was unlikely to meet the delivery deadline.
Samsung then took the case to arbitration, claiming that Pacific Drilling’s cancellation was “an unfair practice”.
The shipbuilder has already received $180m in advanced payments, but the remaining amount for the contract is still outstanding.
