Lower revenue, restructuring costs drag down Vard's Q2 results

WEIGHED down in part by restructuring costs, Vard Holdings on Thursday reported a net loss of 53 million kroner (S$8.46 million) for the second quarter ended June 30, 2016, versus a net profit of 58 million kroner a year ago.

Revenue slid nearly 11 per cent year on year to 2.22 billion kroner, mainly due to lower activity levels at the European yards and at Vard Niteroi in Brazil.

Restructuring costs of 38 million kroner were racked up during the quarter due to statutory payments from temporary layoffs and termination benefits, mainly at Vard Niteroi where it has ceased shipbuilding activities. The corresponding figure for Q2 FY2015 was 14 million kroner.

In line with lower revenue and the restructuring costs, it turned in an operating loss of 78 million kroner in Q2 FY2016.

Financial costs also widened from 60 million kroner previously to 121 million kroner, while share of results of associates totalled losses of nine million kroner versus profits of three million kroner a year ago.

Loss per share was 0.04 krone compared to earnings per share of 0.05 krone a year ago.

For the half year, net loss was 16 million kroner, narrowing from 34 million kroner a year ago. Meanwhile, revenue was down 23.6 per cent to 4.24 billion kroner.