Vard on track to diversifyYard News // February 29, 2016
Vard Holdings Limited has released financial results for the fourth quarter ended 31 December 2015 and full year ended 31 December 2015.
With its core market for offshore oil and gas related vessels showing continued signs of weakness in the short term, Vard also highlighted of its new diversification strategy, aimed at reducing its dependency on the offshore business during the industry downturn. Focusing on other engineering and technology-intensive parts of the shipbuilding market, Vard aims to preserve its core expertise and skilled employee base during the downturn, and utilize its existing yard capacity until an eventual recovery in its core market.
The company made a net loss for the quarter of NKr 170 million and net loss for FY2015 of 1.29 billion. It has an orderbook of 29 vessels, but says its capacity utilization has been impacted by a shortfall in new orders. The company said it retains strong support from major shareholder Fincantieri through long-term business opportunities and synergies.
Roy Reite, Chief Executive Officer and Executive Director of VARD, said: "The group’s efforts to diversify are well underway, and we believe that we are on the right track to recovery. If we succeed with our plan, Vard will not only be able to emerge from this downturn, but come out stronger and armed with new skills and capabilities.”