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    Havyard says diversification strategy is succeeding

    Yard News // March 2, 2016

    Norwegian shipyard Havyard, long known as a builder of offshore support vessels, says it has succeeded with its diversification strategy.

    "We have developed and delivered products for fisheries, aquaculture as well as the renewable energy sector," said Havyard's CEO Geir Johan Bakke. "We expect good profitability on projects in these segments for delivery in 2016 and 2017."

    Mr Bakke said the company was included in the final rounds of several new projects in these segments, but was experiencing price pressure from offshore capacity (other offshore yards).

    "To secure future profitability we have started a strategic review to be more profitable, to be able to adjust future volume and activity within these segments," he said.

    He described the market as "very challenging" with increased counterparty risk on the customer and supplier side.

    Mr Bakke said Havyard's cashflow situation was "challenging" in the short term, but the company expects it to improve in March/April in conjunction with delivery of two hulls and agreed payments from a shipowner.

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