Havyard Posts Profit Drop

Havyard Group has seen profit decline in the third quarter 2015 due to slashed utilization in all of its business areas.

The Norwegian vessel designer and builder booked profit of NOK 6.9 million for the quarter, compared to NOK 13.9 million profit in the corresponding period in 2014. Earnings per share were NOK 0.30, versus NOK 0.63 in Q3 2014.

Lower activity at the yard in Leirvik has caused a drop in the Group’s operating revenue in the third quarter of 2015 (NOK 492.7 million, compared to NOK 548 million in the year-ago quarter).

The Q3 2015 EBIT margin was -0.4 % while year-to-date EBIT margin stood at -0.5 %. This was caused by three loss projects in the Ship Technology segment.

The Oslo-listed company, with its head office located in Fosnavåg, Herøy, employs 795 people as of September 30, 2015, of whom approximately 681 are employed in Norway. Redundancies of some 100 workers were announced in August this year, with biggest cuts expected in Havyard Ship Technology and Havyard Design & Solutions.

“We will continue to strengthen our competitiveness through restructuring, rationalization and downsizing for adapting the capacity and this will give positive effects from the start of 2016,” the company said in its earnings release on Friday.

To remind, Havyard has in the Q3 2015 secured a job to design and build a NOK 700-million subsea vessel for Marine Platforms, postponed for delivery in June 2018.

Havyard’s order book is at about NOK 2,8 billion as of the third quarter of 2015.