The largest shipbuilding companies in the world - the South Korean Hyundai Heavy Industries Co., Daewoo Shipbuilding & Marine Engineering Co. and Samsung Heavy Industries Co. - Recorded record losses in the II quarter.
Record levels of losses due to decline in the volume of investment in exploration and production of hydrocarbons in the deep offshore. The total operating loss of all three companies that reported on July 29 amounted to 4.8 trillion won ($ 4.1 billion).
Since 2010, South Korean shipyards have been actively developing the construction of facilities for oil and gas on the high seas, thus avoiding direct competition with the Chinese companies that cheap labor allowed a foothold in the market less profitable tankers.
Hyundai Heavy has recorded an operating loss in the previous quarter at 171 billion won, while analysts polled by Bloomberg, predicted a profit of 55.4 billion won.
Samsung Heavy received a loss of 1.55 trillion won in April-June, its losses were four times more than market expectations.
Daewoo Shipbuilding recorded operating loss of 3.03 billion won, exceeding the forecast by more than threefold.
However, the company expects to return to profit in the coming time, Samsung Heavy - already in the III quarter.
Shares of Hyundai Heavy since the beginning of 2015 fell by 13%, Daewoo Shipbuilding - by 60%, Samsung Heavy - 29%. Meanwhile, South Korea's main stock index KOSPI has grown by 6.4%.
Recall, shipbuilding is one of the most important sectors of the Korean economy since the 1970's. From 1 January to 20 June inclusive, the share accounted for 8.5% of ships exports of South Korea against 7% in 2014 as a whole.