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Vard returns to profit in Q3 despite Brazil yard woes

Vard Holdings has announced a third-quarter profit of NOK58m ($9.7m), representing a slender return to profit compared to its dismal second quarter.

However, the results represent a steep decline in like-for-like revenues for its third quarter, to NOK2.37bn from NOK2.46bn in 2012.

The company said its performance was hampered Brazilian yard Vard Niterói, where previously reported delays, inadequate access to qualified personnel, and overloading continue to cause problems. Of the four delayed vessels in the order book at Niterói, the first has reached about 95% completion, and is expected to be ready for sea trials soon.

Ongoing attempts to reorganise Niterói production processes are taking “longer than expected” to show results, despite an increase to 1,250 employees and 750 subcontractors, a so-far unprecedented number of personnel at the yard.

However, Vard said its losses were mitigated by improvement in utilisation levels at its Vietnam yard, four successful deliveries from its Norwegian yards, as well as the securing of the largest order in the company’s history for four Pipe Lay Support Vessels (PLSVs) worth a total of NOK6.5bn.

At Vard’s other Brazilian yard, Vard Promar, key infrastructure has now been put in place and 600 staff have been employed so far, and the group can now look forward to a ramping-up of production capacity.

Meanwhile, the group’s total orderbook now stands at NOK19.6bn, its strongest since 2009.

Posted 06 November 2013

© Copyright 2019 Seatrade (UBM (UK) Ltd). Replication or redistribution in whole or in part is expressly prohibited without the prior written consent of Seatrade.

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