China State Shipbuilding Corp (CSSC) has warned of a possible net loss in the first half of this year after posting a 73.1% plunge in first quarter profit.

“Due to reduced newbuilding completion works in the first half of 2013 leading to lower earnings, the company is anticipating a loss or a huge drop in profit for the first half of the financial year,” CSSC said in a statement.

First quarter profit at the Chinese state yard dropped 73.1% to RMB70.74m ($11.47m) from RMB262.81m a year ago.

Revenue also dropped 38.9% year-on-year to RMB3.81bn.