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One of the world’s largest shipbuilders names a new CEO days after dire warning on losses

The shipbuilder latest Wednesday forecast a fourth straight year of operating losses and signaled a rights issue to lessen the risk of tighter credit conditions, prompting a neighbouring 30 percent slide in its shares after the announcement.

The company’s $1.4 billion new slice issue, which follows a $1 billion issue in 2016, commitment be used to pay debt as well as to reduce the risk of banks curtailing imparting due to its weak earnings prospects, Samsung Heavy said in a statement eventually week.

South Korea’s three shipbuilders — the world’s biggest — possess racked up billions of dollars in losses and embarked on major restructuring as patrons slashed orders amid a commodities downturn and a drop-off in shipping return. They also have to fend off stiff competition from Chinese and Japanese rivals.

Samsung Depressed — the smallest of the three — said in a filing it expected an operating loss of 240 billion won ($220 million) in the next monetary year, after an expected loss of 490 billion won this year — the consequence of weak orders and a failure to reach its targets to cut headcount and other tariffs.

The other two shipbuilders are Daewoo Shipbuilding & Marine Engineering and Hyundai Lowering Industries.

Shares of Samsung Heavy have since recovered, inching by about 2 percent on Monday at 9:45am HK/SIN.

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