Samsung Heavy mulls W1.5tr capital increase

[THE INVESTOR] Samsung Heavy Industries is mulling plans to issue more shares to raise up to 1.5 trillion won (US$1.37 billion), local media reported on Aug. 10.

According to reports, the company is reviewing such plans in preparation for expected delays in delivery of, and payment for, offshore drilling facilities.

Samsung Heavy has missed the deadline for delivering a semisubmersible drilling rig to Sweden’s Stena Group, and is now said to be negotiating a new delivery date. 

With the company missing the delivery date, originally set for April 19 under the 825.5 billion won contract, the remaining payment of about 400 billion won is expected to be delayed.

As of March, the construction of the ship was 77 percent complete.

In addition, Samsung Heavy is also expected to miss the delivery date of the offshore central processing facility for Japan’s INPEX. The contract, signed in 2012, calls for delivery to be made in September.

By Choi He-suk (cheesuk@heraldcorp.com)