Danish shipper Torm on Tuesday said it had cancelled a contract to build a new tanker and warned it would make a bigger loss this year than originally forecast, Reuters reports.
The company said it had entered into an agreement to cancel the construction of one medium range product tanker, which was scheduled for delivery in March 2013.
The cancellation of the contract would be recognised in the financial statements in the fourth quarter of 2011 and would lead to a loss of about $13 million. "As a consequence, Torm revises its forecast for the full year of 2011 from an expected loss before tax of $175-195 million to an expected loss before tax of about $190-210 million," Torm said in a statement. The parties had agreed not to disclose the terms.
The company said it had entered into an agreement to cancel the construction of one medium range product tanker, which was scheduled for delivery in March 2013.
The cancellation of the contract would be recognised in the financial statements in the fourth quarter of 2011 and would lead to a loss of about $13 million. "As a consequence, Torm revises its forecast for the full year of 2011 from an expected loss before tax of $175-195 million to an expected loss before tax of about $190-210 million," Torm said in a statement. The parties had agreed not to disclose the terms.