Daewoo Shipbuilding corrects financial statements from 2008 to 2016

SEOUL-- Daewoo Shipbuilding and Marine Engineering Co., a troubled shipbuilder here, changed its incorrect financial statements from 2008 to the first quarter of 2016 on Thursday, it said.

Its operating profit and loss in 2012 was revised from a 486.2 billion won (US$430 million) surplus to a 72 billion won deficit. The shipbuilder was originally known to have suffered losses for four straight years from 2013 to 2016.

In terms of 2008, 119.7 billion won of net profit was revised to 83.2 billion won of net loss, it said.

The operating gain and loss of the first quarter of last year, meanwhile, was changed from a 26.3 billion won deficit to a 154.2 billion won surplus, the shipbuilder said.

The total sales, business and net profits during the cited period, however, remained unchanged, according to Daewoo Shipbuilding.

The correction was made as the Securities and Futures Commission, a regulatory body under the Financial Services Commission (FSC), ordered the shipbuilder to rewrite its statements after an accounting firm was found to have turned a blind eye to years of accounting fraud at Daewoo Shipbuilding.

Deloitte Anjin LLC was ordered by the financial regulator to suspend conducting new audits for one year as punishment from last month.

In March, creditors led by the state-run Korea Development Bank (KDB) announced a fresh rescue package for the ailing shipyard, the second round of bailouts for the shipbuilder that has been suffering from severe liquidity problems over heavy losses in its offshore projects.

After weeks of negotiation, Daewoo Shipbuilding's bondholders, including the National Pension Service (NPS), agreed to the rescue package, paving the way for the shipyard to receive a fresh cash injection of 2.9 trillion won.

Source: Yonhap News Agency

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