Vard turns in Q3 loss of 37 million kroner

SHIPBUILDER Vard Holdings sank into the red with a net loss of 37 million Norwegian kroner (S$7.01 million) for the third quarter ended Sept 30 compared to a profit of 76 million kroner a year earlier.

Revenue jumped 18.5 per cent year on year to 2.81 billion kroner as the firm delivered five vessels during the quarter and landed contracts to build two more.

Loss per share for the quarter worked out to 0.03 kroner, versus earnings per share of 0.06 kroner in the corresponding quarter last year.

The shipbuilder turned in an operating loss of 108 million kroner, against an operating profit of 72 million kroner, as costs and other operating expenses rose. Materials, subcontract costs and others surged 31.3 per cent to 2.14 billion kroner.

Chief executive Roy Reite said: "As the industry steers towards a more cautious investment climate and softer outlook, there continues to be demand for certain vessel types, in particular within the subsea support and construction vessel market, where Vard has core competencies. While we expect below average new order intake in the near to medium term, negotiations on several contracts are ongoing, and Vard remains well positioned."

It has an order book of 40 vessels stretching into 2017 and valued at 20.1 billion kroner as at the end of the third quarter.