Havyard Group achieves first quarter profitCompany News // May 25, 2016
Havyard Group in Norway had an operating profit (EBIT) of NKr 18.7 million in the first quarter on turnover of NKr 460 million.
“After completion of several expensive prototype projects, substantial cost reductions and restructuring, we now see that the tide has turned,” said the group's CEO Geir Johan Bakke. “We’re experiencing a positive development in several of our projects, in particular in the Havyard Ship Technology business area, where we endured the biggest challenges in 2015. We have three deliveries from Havyard Ship Technology in 2016, one windfarm service vessel for Esvagt which is due for delivery in August and two icebreaking offshore vessels for Femco with expected delivery in October. All three vessels are currently being fitted out at the Leirvik shipyard and there is plenty of activity at the shipyard until delivery.”
Havyard Group has been trying to diversify following the collapse in the oil price and in demand for vessel for the offshore oil and gas market. New markets include windfarm service vessels, fishing vessels, vessels for use in the Arctic/ice, and fish farming. "This proved to be the right decision even though the investment in new products has influenced results during the last two years. However, Havyard is now experiencing good market activity within these segments," said the company. "The organisation is now more flexible and market-oriented after the restructuring, being able to quickly direct our focus towards the areas of increasing activity."
“We expect the positive development of the group to continue in 2016, as a large part of the capacity is sold, in particular in Havyard MMC and Havyard Ship Technology. Our focus will be directed towards selling available capacity for the remainder of 2016, and specifically for 2017 and onwards," said the company.