Forex losses, interest costs in Q1 drag Vard into the red

Singapore

SHIPBUILDER Vard Holdings' bottom line took a hit from foreign exchange losses and higher interest expenses, resulting in a first-quarter net loss attributable to equity-holders of 92 million Norwegian kroner (S$16.4 million), down from a net profit of 92 million kroner in the year-ago period.

For the three months ended March 31, the US dollar strengthened 21 per cent against the Brazilian real and 9 per cent against the Norwegian kroner, resulting in net foreign exchange losses of 207 million kroner, of which 33 million kroner was realised, while the remainder was related to a yard construction loan at Vard Promar, which is denominated in US dollars with a 15-year maturity.