Shipbuilder Vard Holdings back in black for Q2

SINGAPORE - Shipbuilder Vard Holdings has posted a net profit of 140 million Norwegian krone (S$28 million) for its second quarter ended June 30, reversing a 20 million krone loss during the same period last year.

Revenue for the Singapore-listed group slipped 0.1 per cent in the same time, however, to 2.94 billion krone.

The group noted that its earnings before interest, tax, depreciation and amortisation rose for the fourth consecutive quarter to 189 million krone, signalling a "gradual recovery in profitability".

It won 2.7 billion krone in new orders during the three months to June 30, and its order book as of June 30 stood at 21.6 billion with deliveries until 2017.

Vard said its Europe yards "continued to experience generally stable operations and high activity levels", but that "operations in Brazil remain challenging".

The group recently acquired a marine design and engineering company in North America to boost its presence in the region.

"With the recent acquisition, we are accelerating our expansion into the important North American market," said Vard's chief executive and executive director Roy Reite.

"Despite the continuing operational challenges in Brazil, I believe Vard is well-positioned to build on our strong foundations to capture new and exciting opportunities in the industry."