Surging steel prices have taken their toll on Korea Shipbuilding & Offshore Engineering Co (KSOE), with the company sinking into the red.

The world’s largest shipbuilder posted a net loss of KRW 722bn ($626m) in the second quarter against consensus estimates of a profit of KRW 47bn.

Operating losses were KRW 897bn for the April to June period, compared with an operating profit of KRW 92.9bn