Cosco sinks into a $79m net loss in Q1

The company received numerous order cancellation requests.

Shipbuilder Cosco International Singapore deepened its net loss in the past quarter, ending Q1 with a $79m in net loss.

This was due to the expected loss on contracts of $70m, DBS Group Research said. More so, losses were recorded in the group's shipyard and shipping operations. Shipyard operations ended the quarter with lower revenue and incurred inventory write-downs of $21.2m.

As of the end of March, its order book stood at $5.8b, with deliveries up until 2020.

"Cosco has received a number of deferment and order cancellation requests. The risks remain prevalent. Several fabrication contracts worth US$1.3b for modules of drillships and FPSOs with certain Brazilian customers are deemed to be more at risk given the current situation in Brazil," DBS Group Research noted.