Another vessel delivery delay for Havyard

Norway’s offshore shipbuilder Havyard Ship Technology AS has today signed an agreement with the buyer of NB 126, a Havyard 833 WE platform supply vessel, on the postponement of delivery of the ship from March 2016 to June 2017.

According to Havyard, the buyer has worked with several projects for long-term employment of the ship, which is a condition for obtaining long-term financing in today’s market.

While Havyard did not identify the buyer in its Wednesday’s statement, the newbuild’s number and the data found on the company’s website show that Havyard was building the vessel, of the Havyard 833 WE ICE design, with hybrid battery power for Fafnir Offshore, a company based in Iceland.

Havyard said Wednesday that the buyer failed to secure the contract for the vessel, so the agreement has been made to postpone the delivery time.

Under the agreement, the buyer’s payment during the construction period will be increased, and the buyer will pay Havyard a compensation for the postponement, Havyard said in the press release.

Based on this agreement, Havyard added, it is not expected that the project results will be affected due to the postponement of delivery time. However, the company acknowledged that the delay will lead to lower capacity utilization at Havyard Ship Technology in 2015, and deferral of margins for the project.

Thus, Havyard expects a negative effect on the result for Havyard Group in 2015 in the order of NOK 20 million due to lower capacity utilization and NOK 10 million due to deferral of margins.

This is not the first postponement for Fosnavåg, Herøy-based Havyard this year. The company had in June 2015 signed a shipbuilding contract with Nigeria’s Marine Platforms for the construction of a Havyard 858 WE subsea vessel, for delivery in the second quarter of 2017.

However, citing the difficult market situation for offshore vessels internationally, Havyard Ship Technology AS on October 27, 2015, inked an agreement with the buyer to defer the delivery to the second quarter of 2018.

Offshore Energy Today Staff