Samsung Engineering in $1 bln rights issue after huge loss; shares dive | Reuters

Samsung Engineering in $1 bln rights issue after huge loss; shares dive | Reuters:

"Samsung Engineering Co Ltd said it was planning a $1.1 billion rights issue after a record quarterly operating loss on oil and gas projects in the Middle East, wiping out nearly a fifth of its market value.

Citing a "lack of preparation and capability" for handling large, complex projects, the construction arm of South Korea's biggest conglomerate booked a 1.5 trillion won ($1.3 billion) operating loss in the third quarter and also flagged the sale of its headquarters building.

While much of South Korea's construction industry has been hit by declining margins in the Middle East, Samsung Engineering is more exposed than rivals as most of its revenue comes from overseas projects."



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