Samsung Heavy Industries Plans To Increase Loans To Raise Funds To Raise Debt-servicing Capacity

- Jan 30, 2018-

On January 26, Samsung Heavy Industries announced plans to increase short-term borrowings by 750 billion won (about 705 million U.S. dollars). For Samsung Heavy Industries facing financial difficulties, this move can strengthen the solvency of enterprises.


Samsung Heavy Industries said it has secured funding from three borrowers, Korea Investment and Securities, NH Investment and Securities and Mirae Asset Daewoo Securities respectively.glenflange


In the meantime, Samsung Heavy Industries also raised its previously announced allotment plan amount from the original 1.5 trillion won to 1.56 trillion won (about 1.47 billion US dollars), the new shares will be issued in April 2018.


In December last year, Samsung Heavy Industries had released 1.5 trillion won (about 1.41 billion US dollars) rights issue plan, was planned to issue new shares in May this year.glenflange


Samsung Heavy Industries announced on the 26th, in 2017 annual operating income 79.0112 billion won (about 46.5 billion yuan), down 24.1%; operating loss of 522.2 billion won (about 3.1 billion yuan), higher than the previously released 490 billion Won (about 2.9 billion yuan) loss expected.


Samsung Heavy Industries expects that Samsung Heavy Industries is expected to make operating profit in 2019 as the result of the increase in orders for new ships and the reduction in fixed costs.


Earlier, Nam Jun-woo, the new chief executive of Samsung Heavy Industries, said that as the demand soared, orders for Samsung Heavy Industries this year will reach 8.2 billion U.S. dollars, up from 6.9 billion U.S. dollars last year. Due to the continuous decline of the shipbuilding industry, SAMSUNG received orders of only 500 million USD in 2016, only 10% of the orders received in that year.glenflange


In addition, Samsung Heavy Industries has begun to cut its operating loss this year, plans to reduce the loss from last year's 4900 billion won to 240 billion won (about 2.3 billion). In 2019, Samsung Heavy Industries estimated sales of about 6.9 billion US dollars, while sales in 2017 to 7.4 billion.