Havyard sees lower 1Q profit

Norwegian ship technology company Havyard saw a reduction in its profit and revenues during the first quarter of 2016, when compared to the corresponding quarter last year, due to lower activity. 

The company’s profit for the period was NOK 15.8 million, a drop when compared to NOK 26.7 million in the year-before quarter.

During the first quarter of 2016, Havyard’s operating revenues were NOK 460 million, compared to NOK 563 million in the year-ago quarter.

In addition to a decrease in revenues, Havyard also posted a decrease in its operating expenses that dropped to NOK 435 million from NOK 551 million in the corresponding period last year.

Havyard explained that the decrease in operating revenues was mainly due to lower activity at the yard in Leirvik compared to the same period in 2015. Only one vessel was in for outfitting during the first quarter 2016.

During the first quarter, Havyard received a cancellation of a shipbuilding contract for a subsea construction vessel, due to a challenging offshore market.

According to Havyard’s 1Q 2016 report, the shipowner agreed to pay a compensation to Havyard thus covering the group’s expenses.

The order book is approximately NOK 1.842 billion as of the end of first quarter 2016 and it includes one PSV, one Offshore windfarm
Service Operation Vessel (SOV), two AHTS Icebreakers, and one live fish carrier.

CEO Geir Johan Bakke said: “We have three deliveries from Havyard Ship Technology in 2016, one windfarm service vessel for Esvagt due for delivery in August and two icebreaking offshore vessels for Femco with expected delivery in October. All three vessels are currently being fitted out at the Leirvik shipyard and there is plenty of activity at the shipyard until delivery.”

Offshore Energy Today Staff

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