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Vard's losses deepen in Q3 on slowing activity in Europe, delays in Brazil

SHIPBUILDER Vard Holdings has deepened its losses for its third quarter ended Sept 30, 2015. On Wednesday, it posted a loss attributable to equity holders of 486 million Norwegian kroner (S$80 million). A year ago, its losses stood at 37 million kroner.

Revenue fell 19 per cent to 2.27 billion kroner, due to reduced utilisation at the European shipyards amid a prolonged industry down-cycle, it said.

"Vard continues to face the dual challenge of dealing with slowing activity at its European yards on the back of continued weakness in the offshore market, and operational issues at its Brazilian facilities.

"The group's results were weighed down by new cost overruns and delays at the Brazilian shipyards, where additional loss provisions were required to account for unsatisfactory progress.

"In particular, the scope and complexity of the series of LPG (liquefied petroleum gas) carriers under construction at Vard Promar exceeds original assumptions, while the efficiency and operational stability at the new yard is still lower than anticipated."