Friday 29 Mar 2024
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SINGAPORE (Feb 27): Vard Holdings, the designer and shipbuilder of offshore and specialised vessels, announced 4Q earnings rose 36.3% to NOK 154 million ($27.3 million) from NOK 113 million a year ago.

The stronger bottomline came on the back of a 45.5% rise in revenue to NOK 4.5 billion due to very high building activity at the yards and with subcontractors.

For the fiscal year ended 31 December 2014 (FY14), earnings came in slightly lower at NOK 349 million despite revenue rising 15.8% to NOK 12.9 billion from NOK 11.2 billion a year ago.

This was due to higher operational expenses, which caused FY14’s EBITDA to dip 37.5% to NOK 429 million.

EBITDA margin improved for both periods, registering 2.7% for 4Q and 3.3% for FY14.

At end of Dec, Vard’s order book is valued at NOK 17.7 billion. This comprises 39 firm vessel orders, 24 of which will be of its own design.

Vard said the recent oil price decline has profoundly altered the exploration & production spending outlook for oil companies, in particular for the North Sea, its home market.

“On the back of the unfavourable short-term market situation, new order intake for 2015 is expected to be weak, although Vard’s existing order book ensures good revenue coverage for the majority of the year,” it added.

It has also instituted a company-wide cost improvement programme, aimed at increasing flexibility and reducing both fixed and variable costs.

Vard closed 5.9% lower at 55.5 cents yesterday.

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