SINGAPORE (March 1): Restructuring helped Vard Holdings narrow FY16 losses to NOK163 million ($27.3 million) from FY15 losses of NOK 603 million.
(See also: Vard Holdings slumps into FY15 losses of NOK603 mil)
For 4Q ended Dec 31, Vard’s losses narrowed to NOK 67 million compared to losses of NOK 83 million in 4Q15.
Restructuring costs of NOK 29 million and NOK 105 million were recognised during the quarter and full year.
FY16 group revenue fell 30% to NOK 7.89 billion from NOK 11.3 billion in FY15, mainly caused by reduced activity related to Vard’s own and subcontractor production, particularly at the group’s European yards.
The lower activity stemmed from low order intake in 2015, says Vard, but also the effects of the previously-announced cancellation of the vessel under construction for REM as well as the reclassification to inventory of the vessel previously under construction for Harkand, and the cessation of operations in Vard Niterói during the third quarter.
In its filing on Wednesday, the shipbuilder notes that its book grew by NOK 411 million over the past quarter, bringing its total to NOK10.6 billion for FY16 – which surpasses new order intake recorded in both FY14 and FY15.
The new order intake was buoyed by a steady flow of variation orders, repair and conversion works, as well as Vard’s success in its diversification into the aquaculture business, says the group.
Additionally, order flow of vessel newbuilding projects has resumed after the end of the quarter with contracts announced for two ferries and one krill fishing vessel, and a letter of intent for an expedition cruise vessel.
(See also: Vard wins contract for krill fishing vessel in Norway)
“In 2017, we remain sharply focused on laying the path for new business development to keep activities at our yards stable,” says Roy Reite, CEO and executive director of Vard.
“We are fine-tuning our organizational structure to support our new business aspirations, with the objective of maintaining Vard’s strong position as a provider of innovative, customized solutions to the global maritime industry.”
Shares of Vard closed flat at 27 cents on Tuesday.
