Vard posts results for 1Q 2017
Vard Holdings Limited, one of the major global designers and shipbuilders of specialized vessels, has announced its financial results for the first quarter ended 31 March 2017 (“1Q 2017”). VARD posted a lower revenue of NOK 1,777 million in 1Q 2017, representing a year-on-year decline of 12% from the NOK 2,023 million generated in the previous corresponding period (“1Q 2016”).
This was mainly attributable to reduced activity at VARD’s Norwegian yards, as well as the cessation of operations at Vard Niterói during 3Q 2016. An EBITDA before restructuring cost of NOK 40 million was recorded in 1Q 2017, compared to NOK 57 million recorded in 1Q 2016. As a result, EBITDA margin decreased from 2.8% in 1Q 2016 to 2.3% in 1Q 2017.
During the quarter, the Group recognized a restructuring cost of NOK 6 million, less than the NOK 11 million recorded in the same quarter of 2016. Net financial costs in 1Q 2017 were NOK 4 million, as opposed to net financial income of NOK 48 million in 1Q 2016.
Consequently, VARD registered a net loss of NOK 27 million in 1Q 2017 compared to a net profit of NOK 43 million in 1Q 2016. This translates to a loss per share of 0.34 SGD cents for 1Q 2017. Positive cash flows from operating activities of NOK 243 million were recorded in 1Q 2017, driven by vessel deliveries and instalments received on other projects.
Due to higher investments in property, plant and equipment mainly in relation to the expansion of facilities at Vard Tulcea, cash flows used in investing activities of NOK 93 million were recorded in 1Q 2017, compared to NOK 35 million recorded in 1Q 2016. Four new orders received, and two vessels delivered during the quarter During 1Q 2017, VARD’s order intake was NOK 1,885 million.
About VARD
Vard Holdings Limited is one of the major global designers and shipbuilders of specialized vessels. Headquartered in Norway and with 9,000 employees, VARD operates nine strategically located shipbuilding facilities, including five in Norway, two in Romania, one in Brazil and one in Vietnam. Through its specialized subsidiaries, VARD develops power and automation systems, deck handling equipment, and vessel accommodation solutions, and provides design and engineering services to the global maritime industry. VARD’s long shipbuilding traditions, cutting-edge innovation and technology coupled with its global operations and track record in constructing complex and highly customized vessels have earned it recognition from industry players and enabled it to build strong relationships with its customers. VARD was listed on the Main Board of the Singapore Exchange on 12 November 2010. Majority shareholder Fincantieri Oil & Gas S.p.A., a wholly owned subsidiary of FINCANTIERI S.p.A., owns 74.45% in the Group. Headquartered in Trieste, Italy, FINCANTIERI is one of the world’s largest shipbuilding groups and has, over its 200 years of maritime history, built more than 7,000 vessels.
