Oakwell Engineering expects net loss for 1H due to shipbuilding

Oakwell Engineering has issued a profit warning of the group’s performance for the six months ended 30 June 2012 (1H2012).

The group operates three main business segments, namely Distributorship, Engineering Design & Fabrication and Shipbuilding.

The group expects to report a net loss for 1H2012 due mainly to the Shipbuilding segment.

The Shipbuilding segment is expected to post a net loss for 1H2012, as a result of delays in the delivery which led to higher-than-expected costs incurred for the group’s first survey vessel project.

The Distributorship and Engineering Design & Fabrication segments remained profitable in 1H2012, despite the general market conditions continuing to be challenging.