Last evening, COSCO Corp (Singapore) announced that it will show a net loss in 3Q15, compared to a profit in 3Q14. This is mainly due to 1) the depressed state of crude oil prices which has had an adverse impact on the global offshore marine industry, 2) the slump in the shipbuilding market, and 3) the languid dry bulk shipping market which has affected COSCO‟s dry bulk fleet operations. As a result, the group incurred higher costs for a few delayed projects as well as write-down of certain inventory. Provisions for impairment of trade receivables have also been made. Maintain SELL with S$0.39 fair value estimate under review.

Source: OCBC Research - 23 Oct 2015