Vard's ratings cut as recovery drags

Singapore

THE third-quarter negative profit guidance Vard Holdings released on Tuesday has confirmed analysts' fears that the group's recovery may be stalled, prompting some to cut their ratings of the firm's stock.

In its statement to SGX, Vard explained that slower-than-expected improvements in throughput and productivity at the new Vard Promar shipyard in Brazil are impacting profitability during the ramp-up phase, while it also incurred additional cost for the two vessels in the Promar order book that were built at a third-party yard and are currently undergoing outfitting at Vard Niterói.