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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.

Lee Hong Liang, Asia Correspondent

October 15, 2015

1 Min Read
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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.

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About the Author

Lee Hong Liang

Asia Correspondent

Singapore-based Lee Hong Liang provides a significant boost to daily coverage of the Asian shipping markets, as well as bringing with him an in-depth specialist knowledge of the bunkering markets.

Throughout Hong Liang’s 14-year career as a maritime journalist, he has reported ‘live’ news from conferences, conducted one-on-one interviews with top officials, and had the ability to write hard news and featured stories.

 

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