Havyard Cancels Subsea Newbuild
Norwegian shipbuilder Havyard Ship Technology AS reports the cancelation of an order for an advanced subsea vessel placed by an undisclosed "international shipping company" in June last year.
The unidentified shipowner has cancelled its contract "in light of the continuing challenges in the offshore market internationally”, says a company statement.
Back in October last year, Havyard said that delivery of the vessel (newbuilding 123), originally scheduled for second quarter 2017, had been postponed.
Now, the company announced that he company and the buyer signed an agreement for cancelation of the shipbuilding contract. The agreement involves payment of a compensation to Havyard.
The Havyard 858 WE subsea vessel was ordered for around NOK 700m (then $88.8m). “The cancellation will, however, lead to a lower activity and a smaller margin loss in Havyard Design & Solutions for 2016,” the exchange filing said.
The vessel would serve for IMR (Inspection Maintenance and Repair) and light construction work on subsea installations.
