China's Dongfang Shipbuilding fell into a wider first-half loss but it is finalizing tanker newbuilding orders.
Dongfang posted a reversal of £3.7m ($5.81m) in the six months to the end of June, greater than the £1.7m loss clocked up a year ago.
CEO Chen Tong kao said: “The directors expect that outlook for the shipbuilding operations to remain weak for at least the next six months.
“The outlook for the global economy remains uncertain in view of the Eurozone sovereign debt crisis and the weak US economy. We therefore remain cautious and envisage a challenging year ahead.”
Dongfang, which listed on the Alternative Investment Market (AIM) of the London Stock Exchange last month as the first Chinese shipbuilder, saw revenue from its two yards drop by one quarter due to the tough environment facing the sector.
Income from its ship operations wing climbed by over 50% to £12.6m. Its income was helped by the addition of two vessels earlier this year.
Dongfang, which has yet to bag any fresh orders this year, says it is close to signing contracts worth $50.8m for a series of bunkering tankers.
It presently has six vessels remaining in its orderbook, including two on its own account.