Vard profit falls in 2013, order intake rises

Vard, majority owned by Italy's shipbuilding group Fincantieri, posted a 2013 profit of NOK357m ($59.17m), down 55.6% compared to a profit of NOK804m in 2012. Revenue was stable at NOK11.16bn.

Singapore-listed Vard pointed out that its financial performance is still negatively impacted by further delays and cost overruns at Vard Niteroi in Brazil, but operations at its European yards and Vietnam facility were stable.

Last year, Vard won an order value of NOK14.2bn, concluding the year with its highest year-end orderbook value since 2008 of NOK19.4bn.

Following 22 deliveries in 2013, the group's orderbook stood at 41 vessels as at 31 December 2013, of which 26 are of Vard's own design.

“Overall, we have done well despite a very challenging operating environment in parts of the group, and have laid the foundations for future growth and profitability,” said Roy Reite, executive director and ceo of Vard.

Vard holds a positive outlook for new order wins this year against the backdrop of spending growth in E&P and continuing demand for larger and more complex offshore support vessels, in addition to wells growing deeper and fields moving farther from shore.

The company also believes there are opportunities in the high-end anchor handing tug supply (AHTS) vessels segment, benefiting from higher rig count, demand from Arctic exploration and limited fleet growth in recent years.