Expects net loss in 2Q15 results
- COSCO Corp issued a profit guidance last Thursday evening, stating that it is likely to show a net loss in its upcoming 2Q15 results as compared to a profit in 2Q14.
- This expected net loss is mainly attributable to
- the low crude oil price over recent months, which has had an adverse impact on the global offshore marine industry;
- the languid dry bulk shipping market which has pressured its dry bulk fleet operations; and
- the slump in the shipbuilding market.
- We have maintained a SELL rating on the group since Nov 2013, and the stock has been on a steady downtrend ever since, losing about 40% of its value.
- Maintain SELL with S$0.43 fair value estimate under review; earnings will be released on 31 Jul 2015.
(Low Pei Han)
Source: http://www.ocbcresearch.com/
