Kawasaki Heavy Industries (KHI) has reported a ¥1.4bn ($13m) operating loss in its shipbuilding activities in the second quarter of this fiscal year.
The figure is the same as the ¥1.4bn operating loss that the Japanese shipbuilder reported in the first quarter.
Overall, KHI said it expects to make a ¥3bn operating loss in shipbuilding for the full fiscal year.
The company said there are some opportunities in shipbuilding in environmental technology.
“As before, the difficult conditions continue with the suspension of negotiations due to the spread of coronavirus and depressed shipping markets,” the shipbuilder said.
KHI secured only one order — an LPG carrier — in the second quarter. The name of the owner behind the order was not disclosed.
But, in July this year, TradeWinds reported that compatriot Kumiai Navigation had placed an order for a 84,000-cbm VLGC at the yard for delivery in 2022.
KHI said its current shipbuilding order backlog consists of six LPG carriers and two submarines.
The company's Japanese shipbuilding activities are nearly all focused on building VLGCs at its shipyard in Sakaide.
But it is still active in bulk carrier and containership shipbuilding through its Chinese joint venture company, Nantong Cosco KHI Ship Engineering (KHI).
Overall, the second quarter was a difficult reporting period for the Japanese industrial conglomerate, which is also involved in the aerospace and the motorcycle markets.
The company as a whole made a ¥21.8bn ordinary loss and a ¥27.2bn net loss, mainly due to the poor performance of its aerospace division.
