Vard Holdings posted losses of NOK603 million in FY15 compared to profit of NOK 349 million in FY14.
Group revenue for FY15 came in at NOK 11.14 billion, down 14% y-o-y, with the decrease due mainly to reduced activity at some of the group’s European shipyards, as a result of the shortfall in new orders.
The group expects a further drop in revenue to NOK 8-9 billion for 2016.
With its core market for offshore oil and gas related vessels showing continued signs of weakness in the short term, the shipbuilder of offshore and specialised vessels announced a new diversification strategy.
This is 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, the company aims to preserves its core expertise and skilled employee base during the downturn. It also plans to utilize its existing yard capacity until an eventual recovery in its core market.
With the implementation of the new business strategy, it foresees a recovery to NOK 12-13 billion in revenues, reaching previous highs by 2020, also on the back of an expected recovery of the offshore market from 2018.
Shares in Vard ended at 13.7 cents on Feb 26.
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Group revenue for FY15 came in at NOK 11.14 billion, down 14% y-o-y, with the decrease due mainly to reduced activity at some of the group’s European shipyards, as a result of the shortfall in new orders.
The group expects a further drop in revenue to NOK 8-9 billion for 2016.
With its core market for offshore oil and gas related vessels showing continued signs of weakness in the short term, the shipbuilder of offshore and specialised vessels announced a new diversification strategy.
This is 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, the company aims to preserves its core expertise and skilled employee base during the downturn. It also plans to utilize its existing yard capacity until an eventual recovery in its core market.
With the implementation of the new business strategy, it foresees a recovery to NOK 12-13 billion in revenues, reaching previous highs by 2020, also on the back of an expected recovery of the offshore market from 2018.
Shares in Vard ended at 13.7 cents on Feb 26.
Click Here To Register For Free Trial Services OR Give A Missed Call : +6531581402 Follow Us On Twitter : www.twitter.com/epicresearchsg Like Us On Facebook : www.facebook.com/EpicResearchSingapore Need Any Assistance Feel Free To Mail Us at : info@epicresearch.sg
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