SINGAPORE - Norwegian shipbuilder Vard Holdings' net profit sank 89.7 per cent to 8 million Norwegian kroner (S$1.43 million) for the three months ended March 31. This was largely due to unrealised foreign exchange losses and higher interest expenses.

Revenue for the quarter rose 14.6 per cent at 3.06 billion kroner, versus 2.67 billion kroner in the corresponding period last year, due to increased yard activity with subcontractors.

However, this was offset by a spike in financial expenses, which was 646.2 per cent higher than the corresponding period last year.

Loss per share for the quarter was at $1.36, a 184.5 per cent fall compared to the $1.81 previously. Net asset value per share came in at 60 cents, less than the 62 cents previously. No dividends were declared for the quarter.

Mr Roy Reite, chief executive officer and executive director, said he expects weak order flows to prevail this year.

Vard announced in a statement on Wednesday that the group will address the challenges arising from lower demand, increased competition and lower capacity utilisation through a strict cost cutting program across all units.

"To mitigate the effects of lower yard activity, we aim to streamline the cost structure of our business over the next few months, as well as foster stronger ties with new and repeat customers to better position ourselves for new orders once the industry makes a turnaround," said Mr Reite.

Vard Holdings shares was trading down 2.5 cents to 56.5 cents as at 9.19am on Wednesday.