STX Offshore & Shipbuilding, the troubled South Korean company that builds cruise liners and ferries in Finland and France, has reported a huge increase in net loss in the second quarter of the year.
Net loss widened to KRW2.8 trillion, equal to $2.03 billion, in the first three months of the year from KRW73.7 billion in the same period last year, reports in the shipping media say.
The company has suffered from weak cash flows, which has increased financing costs. At the end of July, its principal creditors agreed to provide a total of $1.9 billion in new funding to the company through a cash injection and debt to equity swap.
STX Offshore & Shipbuilding owns in full STX Finland that has two shipyards plus a 64% stake in STX France through STX Europe, an Oslo based subsidiary company. The group has put its European yards for sale and at Christmas, sold its remaining shares in a Singapore listed builder of offshore services vessels to Fincantieri in Italy.
