Havyard’s profit cut in half

Havyard, a Norwegian ship technology company, informed on Friday that its profit and revenues for the third quarter 2015 have plunged mainly due to lower activity at the Leirvik yard. 

Namely, the company’s profit for the quarter amounted to NOK 6.9 million, which is only a half of its third quarter 2014 profit that totalled NOK 13.9 million.

The company also on Friday posted a dip in its third quarter 2015 operating revenues totalling NOK 493 million, when compared to revenues of NOK 548 same time last year. The company said the decrease was mainly due to lower activity at the yard in Leirvik.

For the third quarter of 2015, the Group recorded earnings before interest and tax (EBIT) of NOK -2.1 million, while the EBIT for the third quarter of 2014 was NOK 16.3 million. This corresponded to an EBIT margin of -0.4 % in the third quarter of 2015 compared to 3.0 % in the third quarter of 2014.

Lower EBIT margin was affected by lower activity than planned and therefore lower capacity utilization in the most segments, Havyard explained. 

In October, Havyard postponed the delivery of a newbuild subsea vessel for Marine Platforms Ltd from June 2017 to June 2018. Marine Platforms has the right to cancel the contract in March 2016.

Offshore Energy Today Staff

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