Havyard reports cancelation of subsea newbuild

MARCH 9, 2016 — Norwegian shipbuilder Havyard reports the cancelation of an order for an advanced subsea vessel placed by an undisclosed "international shipping company" in June last year (see earlier story).

Back in October last year, Havyard said that delivery of the vessel (newbuilding 123), originally scheduled for second quarter 2017, had been postponed.

Today the company announced that "in light of the continuing challenges in the offshore market internationally, Havyard Ship Technology AS and the buyer have today signed an agreement for cancelation of the shipbuilding contract. The agreement involves payment of a compensation to Havyard.

"Planned delivery of the vessel was set to Q2 2018, and will therefore have no affect for liquidity and profits in Havyard Ship Technology AS for the financial year2016. The cancelation will however lead to a lower activity and a smaller margin loss in Havyard Design & Solutions AS for 2016."

Want more? Subscribe now!

News from NASDAQ