BUSINESS

Greek shipowner DryShips questions Rongsheng's ability to deliver

China Rongsheng Heavy Industries Group, the country’s largest private shipbuilder, said on Wednesday it expects to report a substantial full-year loss just months after it appealed to the government for financial help.

Analysts have said the company could be the biggest casualty of a local shipbuilding industry suffering from overcapacity and shrinking orders amid a global shipping downturn.

Greek shipowner DryShips Inc has already questioned whether some of the ships on order at China Rongsheng will be delivered, which could hit its revenue and profitability next year.

DryShips has four dry-bulk carriers on order at the company’s shipbuilding subsidiary, Jiangsu Rongsheng Heavy Industries, that are due for delivery in 2014.

“The deliveries of these vessels are severely delayed,” said Ziad Nakhleh, DryShips chief financial officer, during a third-quarter results presentation last month.

[Reuters]

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