Vard Q1 profit dives

Vard Holdings has made a disappointing start to the new financial year with a 53% decline in first quarter profit.
Vard CEO Roy Reite

Vard CEO Roy Reite

Net income for the first three months of 2014 was NOK 85m ($14m) versus the NOK 180m seen twelve months earlier.

The Singapore-listed company said revenues dipped 2.7% to NOK 2.67bn, while ebitda declined 43.8% year-on-year to NOK 171m.

However, the company was upbeat over future prospects after a first quarter order haul the company itself described as “exceptional”.

Vard secured newbuilding orders for eight vessels during the quarter worth NOK 5.5bn, which took its orderbook to a five-year high of NOK 21.8bn.

The order intake included an arctic anchor handler for Bourbon, an subsea construction vessel for Solstad Offshore, a diving support and construction vessel for Technip and three PSVs, two of which were for Mermaid Marine Australia.

Vard said it expects continued strong demand from the subsea support and construction vessel segment, despite concerns over rising production cost in the oil & gas industry.

“We have had a promising start to the new year,” Vard Holdings chief executive Roy Reite said in a statement.

“We are excited for the upcoming projects in 2014 and are confident of building upon our solid fundamentals to tap on future growth opportunities.”

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