Vard 2014 Order Book Bulging: Q1 2014 Report

Posted by George Backwell April 28, 2014

Joint Singapore/Norway based offshore & specialised vessel designer and shipbuilder, Vard Holdings, has released its first quarter 2014 financial results, showing its order book value at a five-year high.

Highlights

Exceptionally high order intake of NOK 5.5 billion, securing eight new vessels in 1Q2014
Order book at five-year high
Stable first quarter revenue of NOK 2.7 billion
Successful completion of one more vessel at Vard Niterói
Group retains positive outlook for subsea support and construction vessels

Overall improved load situation and utilization of yards
During the quarter, one of the delayed vessels at Vard Niterói was completed, reducing the yard’s load from its peak in the fourth quarter of the last financial year.

Vard Promar, the Group’s second Brazil yard, is in the final stage of construction, with the installation of the gantry crane to be finalized in July 2014.

On the back of three new contracts secured during the quarter, Vard Vung Tau’s order book lengthened, and yard utilization improved immediately. All projects at the Vietnam yard are progressing well.

The investment program at Vard Tulcea in Romania was completed, leading to a positive development in productivity. The hull yards in Romania experienced high workload in 1Q2014, while the outfitting yards in Norway generally observed a good level of yard utilisation.

Positive outlook from continued strong demand for subsea support and construction vessel segment
The Group says it remains positive on order activity for the full year 2014, but also considers the order intake in 1Q2014 to be exceptional. VARD expects to see continued strong demand from the subsea support and construction vessel segment despite concerns over the rising production cost in the oil & gas industry. Average vessel size and complexity are expected to continue to increase.

Roy Reite, Chief Executive Officer and Executive Director of VARD, commented, “We have had a promising start to the new year, and continue to reinforce our position as a market leader, and strengthen partnerships with new and repeat customers. We are excited for the upcoming projects in 2014 and are confident of building upon our solid fundamentals to tap on future growth opportunities.”