Vard in tax riddle

Brazil has hit Vard Holdings with a NOK 200m ($31.92m) tax bill which the shipbuilder is contesting.

Singapore-listed Vard is considering the need for provisions in its accounts after receiving the tax bill dated to its 2010 financial year.

The shipbuilder explains the issue relates to goods and services delivered to Vard Nitero by its Norwegian businesses.

Vard says it will file an appeal against the ruling and will not be making any payment until the case has been decided.

Vard recorded a net profit of NOK 140m in the second quarter of this year, a period in which its core operating profit climbed by 56.2% to NOK 189m.

Analysts at OCBC are projecting an operating profit of NOK 724.7m for Vard in 2014.