Samsung Heavy Industries to raise operating funds
Samsung Heavy Industries issued 30 billion won privately-owned corporate bonds on August 25, with 25 billion won on August 18. The company has boosted its cash reserves by 55 billion won this month alone.
Last month, 30 billion won privately owned corporate bonds and 20 billion won commercial paper.
The rapid rise in the operating fund has to do with the significant operating loss of the company in the first half of the year.
In the second quarter, its combined operating losses amounted to 707.7 billion won and its consolidated sales of 1,691.5 billion won decreased from 1,826.6 billion won in the previous quarter and 1,770.4 billion won in Q2, 2019. This is due to COVID-19 and the ensuing decrease in oil prices, a slowdown in the drilling industry that led to a fall in drilling stock value.
Samsung Heavy Industries loans reached five trillion won in Q2 and short-term loans with a maturity of one year or less account for more than 60 per cent of the amount. Meanwhile, the company's cash assets amounted to 1.3 trillion won in that year.
The company won two very large ethane carrier construction contracts on August 25 and is expected to deliver a total of 29 ships in the second half, which ensures that its cash flow will improve to some extent.
Maritime Business World