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Vard Holdings' Q2 earnings plunge 58.6%

SHIPYARD Vard Holdings' second-quarter earnings took a dive amid a slowdown in activity due to the slump in crude oil prices.

Net profit for the three months ended June 30, 2015, plunged 58.6 per cent year on year to 58 million Norwegian kroner, the company said on Tuesday.

Translated into Singapore dollars as at June 30, the drop was even steeper - the Q2 earnings worked out to S$10 million, a 64.3 per cent plunge over the same period, the company said on Wednesday.

Earnings per share fell 64.1 per cent from the previous year to 0.85 Singapore cents.

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This slide came on the back of lower revenue, which slid 15.4 per cent year on year to 2.49 billion Norwegian kroner.

Vard said on Tuesday that activity at its yards had fallen and it was cutting costs in order to cope with it. It has also started job cuts, with "its extent depending on the order book development going forward", it added.

Chief executive officer and executive director Roy Reite said the firm would continue to focus on research and developing new business.

Vard shares were down half a cent to finish at S$0.485 on Tuesday.