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Vard Holding returns to black despite revenue decline, wins US$300m deal

SHIPBUILDER Vard Holdings on Thursday posted a net profit of 37 million Norwegian kroner (S$6.2 million) for its first quarter ended March 31, 2016, reversing from a net loss of 92 million kroner a year ago.

Revenue fell 34 per cent to 2.02 billion kroner on reduced activity, especially at the European yards and Vard NiterĂ³i. The reduction is both related to own and subcontractor production, it said.

The change in net financial items from minus 216 million kroner in Q1 2015 to 48 million kroner in Q1 2016 helped it to stay in the black. This is related to foreign exchange gains and losses; the group had a net forex gain this quarter, versus a net forex loss a year ago.

Separately, it said that it has won a contract worth close to U$300 million to design and build 15 module carrier vessels for Topaz Energy and Marine to navigate the shallow river systems, as they transport modules through the Russian waterways to oilfields in Kazakhstan.

Five of the vessels will be built at Vard Braila and four at Vard Tulcea in Romania, while the remaining six will be built at Vard Vung Tau in Vietnam. Delivery is scheduled for between Q3 2017 and Q2 2018.