Vard's first-quarter loss widens to $18m

Vard Holdings' shipbuilding facilities at the Brattvaag yard in Norway. The company widened its operating loss as its Ebitda margin before restructuring cost decreased from 2.3 per cent in the year-ago quarter, to "nil" in the fiscal first quarter of
Vard Holdings' shipbuilding facilities at the Brattvaag yard in Norway. The company widened its operating loss as its Ebitda margin before restructuring cost decreased from 2.3 per cent in the year-ago quarter, to "nil" in the fiscal first quarter of 2018.PHOTO: VARD HOLDINGS

Revenue up 28% due to more activity, progress of cruise vessels under construction

Shipbuilder Vard Holdings yesterday posted its 2018 fiscal first-quarter net loss that widened from the quarter a year ago.

Net loss for the three months ended March 31 stood at 109 million Norwegian krone (S$18 million), compared with a loss of 25 million krone in the same period a year ago.

This translated to a loss per share of 0.09 krone, compared with a loss per share of 0.02 krone.

Revenue for the fiscal first quarter in 2018 was 2.27 billion krone, up 27.5 per cent from a year ago, due to increased activity, especially at the Romanian yards that reflect the progress of the six expedition cruise vessels under construction.

But Vard widened its operating loss as its Ebitda (earnings before interest, taxes, depreciation and amortisation) margin before restructuring cost decreased from 2.3 per cent in the year-ago quarter, to "nil" in the fiscal first quarter of 2018.

It also recorded a restructuring cost of 11 million krone during the period.

Vard's cash flow from its operating activities swung into negative territory for the quarter, at negative 266 million krone at the end of March 31, compared with a positive cash flow of 243 million krone as at March 31 last year.

  • AT A GLANCE

  • REVENUE: 2.27 billion krone (+27.5%)

    NET LOSS: 109 million krone (NM)

Italy's Fincantieri, which already has a more than 80 per cent stake in Vard, has made an exit offer to buy the remaining shares that it does not already own at 25 Singapore cents apiece.

Following unhappiness from its minority shareholders over, among other things, the errors in the circular to shareholders, the exit offer has been extended to late July.

The Singapore Exchange Regulation, or RegCo, has ordered Vard to hold a new extraordinary general meeting to vote on the exit offer.

Shares of Vard closed unchanged at 25 cents yesterday.

A version of this article appeared in the print edition of The Straits Times on June 05, 2018, with the headline 'Vard's first-quarter loss widens to $18m'. Print Edition | Subscribe