Singapore-listed Vard Holding sank deeper into the red as third-quarter losses widened to US$80.2 million.
The losses were attributed to the dual challenge of a severe cyclical downturn in its core market, and managing the turnaround of its Brazilian operations.
“New cost overruns and delays at the Brazilian shipyards, where additional loss provisions were required to account for unsatisfactory progress,” says Vard in a statement, “In particular, the scope and complexity of the series of LPG carriers under construction at Vard Promar exceeds original assumptions, while the efficiency and operational stability at the new yard is still lower than anticipated.”
Revenue for the three months to Sept 30 fell 19 per cent to US$375 million, due to reduced activity at some of the European shipyards amid a prolonged industry down-cycle, said Vard Holdings in a filing to the Singapore Exchange on Wednesday (Nov 11).
"We will continue to pursue cost improvement initiatives and organisational changed to streamline our business, and make the company competitive to seize new business opportunities," said chief executive and executive director Roy Reite.
"Our recent efforts to broaden our vessel offerings have been encouraging, and we will accelerate these efforts in the coming months, also look at completely new business areas."
In a separate announcement, Vard says it has secured a new contract for the design and construction of one offshore vessel for an undisclosed international customer.
The new offshore vessel is designed by Vard Design in Alesund, Norway. With the hull to be constructed at Vard Braila in Romania, outfitting and delivery is scheduled from Vard Langsten in Norway in 2017.
As at end Sept, the group had 31 vessels in the order book.