SINGAPORE (Nov 17): HSBC Global Research reckons Cosco Corp Singapore’s weak margins may continue to persist given the shipping services company’s dependency on offshore orders.

It notes that Cosco’s impressive order backlog of US$7.9 billion ($11.2 billion), which is more than twice its revenue in 2014, should be making profits under “normal” circumstances.

However, these offshore orders are vulnerable to delays and cancellations, execution issues and poor order pricing, which leads to lower margins.

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