Shipbuilders Vard Report Financial Fair Sailing

Designers and shipbuilders of offshore and specialised vessels, Vard Holdings, has announced its financial results for the second quarter of financial year 2014 (“2Q2014”), and first half ended 30 June 2014 (“1H2014”). Highlights are as follows:

• EBITDA increased for the fourth consecutive quarter; EBITDA margin of 6.4% increased year-on-year and stable from 1Q2014
• Net profit for 2Q and 1H2014 up from comparable periods in 2013
• Healthy order intake of NOK 2.7 billion for 2Q2014 and high order book visibility
• Stable operations in Europe; high activity level in Vietnam
• Significant growth in workforce in new yard Vard Promar in Brazil, and recalibration in Niterói
• Recent acquisition and integration of leading design and engineering company boosts the Group’s service offering and market position in North America

Revenues for 2Q2014 were NOK 2.94 billion, in line with the corresponding period of 2013 (“2Q2013”), and revenues for 1H2014 registered at NOK 5.61 billion.

Signalling a gradual recovery in profitability, EBITDA rose for the fourth consecutive quarter to NOK 189 million.

Order book
In addition, Vard reports that in 2Q2014, VARD recorded a healthy order intake of NOK 2.7 billion following five new vessel contract wins across all three of VARD’s major vessel segments.

On the back of seven vessel deliveries, VARD concluded 1H2014 with a strong order book value of NOK 21.6 billion and 43 vessels in the order book. The existing order book stretches into 2017, and includes 27 vessels of VARD’s own design.

www.vard.com