Italy's Fincantieri is injecting fresh equity into Vard Group after the Norwegian shipbuilder suffered heavy losses.
Vard has logged a loss after taxes of NOK 1.88bn ($220m) last year, against a NOK 99m loss in 2017, Norwegian daily Finansavisen reported.
Vard has had accumulated losses of NOK 5bn the last five years and the group had negative equity at the end of 2018.
But Fincantieri has committed to inject NOK 1bn in fresh equity.
Vard has five shipyards in Norway and previously had a focus on delivery ships to the offshore and oil service industry. It is now restructuring to build cruise and expedition ships, and fishery vessels, amongst other ships.
The new strategy was implemented early in 2016.
Outgoing CEO Roy Reite told the newspaper he is very pleased with the co-operation with Fincantieri. He is leaving his position this month after having held it for 18 years. Reite will remain on Vard's boar.
The group has some 1,500 employees in Norway and some 8,600 in total.
Fincantieri, the Italian shipbuilding group, bought heavily into Vard, when it was called STX OSV Holdings, when STX pulled out in 2012.
Vard was delisted in Singapore after Fincantieri bought additional shares. It owns some 97% of the shares.
