Why Vard's Brazil woes may not be over just yet
Drag likely to extend into FY14.
According to OSK, Vard Niterói is still plagued by delays and cost overruns although management has implemented
organisational changes at the yard.
Delivery of its remaining four vessels (Pro30, Pro31, Pro32, Pro33) are further delayed by 2-3 months each, with the last vessel expected to be delivered in 1Q15. We think VARD’s Brazil woes may extend into FY14.
Here's more:
VARD saw strong orders in 3Q13, winning NOK7.95bn worth of contracts. Its YTD 2013 new orders worth NOK11.9bn are close to our target of NOK12bn, while its net orderbook stands at NOK19.6bn. Management is positive on securing more orders.