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Vard issues profit warning

Vard issues profit warning
Offshore vessels designer and builder Vard Holdings has issued a profit warning relating to its financial results for the third quarter ended 30 September and the full year ending 31 December.

Singapore-listed Vard said due to “operational challenges at Brazilian shipyards of the group, combined with negative trend in the Brazilian economic and political environment, the results for the third quarter and the full year will be materially negatively affected.”

The company did not give any guidance on the financial figures.

In the first half ended 30 June, Vard posted a loss of NOK34m ($4.2m) as against a profit of NOK232m in the year-ago period.

The weak offshore oil and gas market has weighed down on demand for oil rigs and OSVs, slowing business at Vard’s shipyards.

Vard, owned by Italy’s Fincantieri Group, has implemented strict cost-cutting measures such as reduction of overheads and lessening the use of outsourced and subcontracted labour.

Recently, Vard won new orders worth more than $100m to design and build two offshore subsea construction vessels for Dubai-based Topaz Energy and Marine.