Vard’s 2Q earnings tumble 59% to $9.8 mil as O&G sector stays bleak
http://www.theedgemarkets.com/sg/article/vard’s-2q-earnings-tumble-59-98-mil-og-sector-stays-bleak
SINGAPORE (July 22): Vard Holdings, the shipbuilder of offshore specialised vessels, posted a 58.6% fall in earnings to NOK 58 million ($9.8 million) for the 2Q15 ended June compared to a year ago.
This translates into earnings per share of 0.85 cents for 2Q15.
For 1H15 ended June, Vard sank into losses of NOK 277 million from profits of NOK 190 million in the same period a year ago (1H14).
Vard says it faced a slowdown in activity at some yards in 1H15 as the overall weakness in the oil and gas sector began to impact operations.
“Order book development remained muted, with one new vessel order secured by the group during the quarter. New order intake, including variation orders and repair and conversion work, amounted to NOK 956 million,” says Vard in a filing.
In 2Q15, Vard posted a revenue of NOK 2.49 billion, representing a 15.3% decline from 2Q14, whereas 1H15 revenues came in at NOK 5.55 billion, in line with 1H14.
At the end of 2Q, order book value stood at NOK 13.92 billion, representing a 35.6% decrease from the same period in the preceding year (2Q14). This corresponds to an order book of 29 vessels.
Vard closed 0.5 cent lower at 48.5 cents on Tuesday.