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Vard warns of Q3 loss due to Brazil yards

Vard warns of Q3 loss due to Brazil yards
Singapore-listed shipbuilder Vard expects to report a loss for the third quarter as it continues to try and bring its Brazilian yard operations to speed.

Vard said it expected to report a marginal loss on EBITDA in the third quarter.

Explaining the expected loss it said: “In Brazil, significant investments have been made in strengthening the organization in order to reach production targets at Vard Promar. However, slower-than-expected improvements in throughput and productivity at the new shipyard are impacting profitability during the ramp-up phase. Additional cost was also incurred for the two vessels in the Promar order book that were built at a third-party yard and are currently undergoing outfitting at Vard Niterói.”

The company said operations at its European yards were stable although there were a limited number of projects where there would be cost overruns.