Vard back in black

Vard Holdings has returned to profit in the second quarter of 2014, figures released by the company Tuesday show.

The Singapore-listed company said net income was NOK 140m ($22.6m) versus a loss of NOK20m in the same period a year ago.

Revenue was largely unchanged from a year ago at NOK 2.9bn, but costs showed a year-on-year decline of 7.9% to NOK 2bn.

Vard reported a healthy order intake of NOK 2.7bn for the quarter pushing its order backlog to 43 vessels worth NOK 21.6bn.

Vard said its facilities in Europe continued to experience generally stable operations and high activity levels.

“In the wake of record investments in Romania, we are now focusing on enhancing organisational efficiencies to drive down costs and secure long term competitiveness,” it added.

Its Vietnam yard saw high activity and expanding operations on the back of a series of recent contract wins which has resulted in improved visibility and yard utilisation.

In contrast, Vard’s Brazil operations continue to remain challenging.  The company said additional resources from Europe are being mobilized to strengthen the organization and implement productivity improvement measures.