Vard wins order for advanced stern trawler
FEBRUARY 22, 2016 —Norway’s largest trawler company, Havfisk ASA, has placed a NOK 325 million (about $38 million) order with Vard Holdings Limited for the design and construction of an 80 m
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Vard Marine to design icebreaking vessel for Chile
FEBRUARY 2, 2016 – Vard Marine has secured a contract worth EUR 4 million for the design of an Antarctic icebreaking vessel for the Chilean Navy. Based in the U.S. and Canada,
Vard Promar delivers its first ship
JANUARY 11, 2016 — Singapore listed shipbuilder Vard Holdings Limited, which is a 55.63% owned subsidiary of Fincantieri, reports that the first vessel was delivered January 8 from its newest shipyard, Vard
Transpetro cancels two LPG newbuilds at Vard Promar
It reported today that it has been notified that Petrobras Transportes S.A. (Transpetro) has terminated the contracts for two liquefied petroleum gas (LPG) carriers on order at 50.5% owned indirect subsidiary Vard Promar.
The vessels in question are the last two of a series of eight LPG carriers originally contracted at the Brazilian shipyard in June 2010, for delivery from Vard Promar between 2014 and 2016. The combined contract value for the series of eight vessels was $536 million.
The first of the eight vessels, the 8,000 cu.m Oscar Niemayer, was delivered this past July.
Singapore listed Vard, which is 55.63% controlled by Fincantieri, says that the construction of the two vessels that have now been canceled is “at a very early stage.”
Vard is currently reviewing its overall exposure to the Brazilian market, and it says that the termination of the contracts – if effective – is “expected to reduce the company’s overall exposure. At the same time, the company intends to claim compensation from Transpetro for damages in relation to the terminated contracts.”
Vard says the impact of the termination is not expected to have a material effect on the earnings per share of the Group for the financial year ending December 31, 2015.
Vard: One new order, a lot more red ink
First the good news: It’s an order for an offshore vessel of undisclosed type or size, for an undisclosed owner, at an undisclosed price. Designed by Vard Design in Ålesund, Norway, the vessel’s hull will come from the Vard Braila shipyard in Romania, with outfitting and delivery scheduled from Vard Langsten in Norway in 2017.
Now to the mounting losses. Vard recorded a net loss of NOK 845 million ($1($98.4 million) and NOK 1.1 ($128 million) for 3Q2015 and 9M2015, against a loss of NOK 160 million ($18.6 million) and profit of NOK 30 million ($3.5 million) respectively in the corresponding 2014 periods. The third quarter loss attributable to equity holders came at NOK 486 million ($56.5 million), as compared to a loss of NOK 37 million ($3.4 million) in 3Q2014.
Over the first nine months of the year, cash holdings declined from NOK 2.0 billion ($232 million) to NOK 906 million ($105 million) as at 30 September 2015 on the back of capital-intensive projects requiring a significant amount of working capital, and the cash impact of losses in Brazil. However, cash holdings remained stable in the third quarter compared to the balance of NOK 904 million at the end of 2Q2015.
Although orders picked up in the third quarter, with four new vessel contracts secured, total order book value at September 30 was NOK 14.01 billion ($1.6 billion) — a 30% decrease from the third quarter 2014 figure.
Currently, Vard has an order book of 31 vessels, of which 18, or 58%, will be of its own design.
Vard is winning some work outside of its traditional North Sea market and in non-offshore related specialized vessels. Still, that’s not been enough to offset the impact of continuing offshore weakness in its European shipyards and of lower utilization and cost overruns at its Brazilian shipyards, where “additional loss provisions were required to account for unsatisfactory progress.”
“In particular,” says the company, “the scope and complexity of the series of LPG carriers under construction at [50.5% owned subsidiary] Vard Promar exceeds original assumptions, while the efficiency and operational stability at the new yard is still lower than anticipated.”
Downsizing continues at Vard’s Niterói Brazil yard in line with a declining workload.
Activity levels at Vard’s shipyards in Romania and Norway continue to decline on the back of a shortfall of sizeable new orders and postponement of deliveries in the current order book.
In Vard Tulcea, the larger of its two shipyards in Romania, a restructuring process is underway and a number of engineering resources have been subcontracted to Vard’s parent group Fincantieri in order to retain highly skilled staff in the organization. Vard Tulcea has also delivered first steel sections to Fincantieri cruise shipbuilding projects, and opportunities are being evaluated how the yard can carry out a larger share of such project.
In Norway, temporary layoffs are being imposed.
Operations and yard utilization at the Vietnam shipyard, Vard Vung Tau, are said to “remain robust.”
Vard says that work is underway on a comprehensive strategy overhaul and development of a new business plan which it will unveil when it releases its full year figures.
It says a key element of that plan will likely be a diversification of production, with synergies with the Fincantieri parent group expected to play a major role.
Vard says its “exposure to the Brazilian market is under review.”
Vard issues a profit warning
Vard cited disclosures made in its first and second quarter reports regarding the operational challenges at its Brazilian shipyards of the group and what it called “the negative trend in the Brazilian economic and political environment/”It said third quarter and full year results “will be materially negatively affected.”
The details will be disclosed on November 11 when Vard announces its unaudited third quarter financial results. In the meantime, the Board is advising its shareholders and investors to exercise caution when dealing in the shares of the company.
Vard gets $100 millon order for Topaz twosome
Developed for crane operations and light subsea construction with intervention duties, the 98.1m x 20 m vessels will be of Vard 3 08 design by Vard Design in Ålesund, Norway.
They will be delivered from Vard’s Brattvaag shipyard in Norway in 3Q 2017 and 4Q 2017 respectively. The hulls will be constructed at the Vard Tulcea shipyard in Romania.
The DP2 class vessels will have a 120-ton active heave compensated offshore crane with the capability to reach working depths of 3,000 m.
Subsea equipment can be lowered down onto the seabed through a 7.2 m x 7.2 m moonpool or over the side of the ship.
Both vessels will be prepared for two Remote Operated Vehicles (ROVs), deployed via Launch and Recovery Systems (LARS) in the ship’s side.
The vessels will be built according to the latest Special Purpose Ship (SPS) regulations, and can accommodate up to 82 persons in high standard cabins.
“We are honored to receive these contracts from our new customer in Dubai, and are pleased to welcome the company into Vard’s client portfolio,” said Vard CEO and Executive Director Roy Reite. “We look forward to developing these new vessels closely with the Topaz team.”
DOF charters in PSV from Vard for Chevron job
The vessel, now named Skandi Responder, is a VARD 1 08 design platform supply vessel. According to Vard it is the first of two vessels whose original shipbuilding contracts were terminated earlier this year. It has now been delivered from the Vard Vung Tau shipyard in Vietnam and sold to Vard Shipholding Singapore Pte. Ltd., a newly established wholly-owned subsidiary of Vard Holdings.
Vard says that it continues to explore opportunities for a sale of the vessel. The second PSV whose contract was terminated is still under construction at Vard Vung Tau, with an expected completion date in second quarter 2016.
Vard CEO and Executive Director Roy Reite commented, “I am delighted that together with our long-term client DOF, we have found a solution that secures employment for this vessel following completion at the yard in Vung Tau. Securing this charter in today’s difficult market is proof of the attractiveness of Vard-built vessels for some of the most demanding jobs in the offshore industry, and I am confident that successfully operating it in Australia will increase our chances for a sale.”
Vard reels in contract to build gillnetter
AUGUST 13, 2015—Vard Holdings Limited, one of the major global designers and shipbuilders of offshore and specialized vessels, reports that it has secured a contract worth NOK 60 million (about $7.35 million) for
Vard acquires ICD Software
JUNE 24, 2015 — Vard Holdings Limited says that, through its subsidiary Seaonics, it has acquired ICD Software, a provider of automation and control system software for the offshore and marine sectors.