Vard sinks deeper with NOK486m net loss in 3Q

More headaches surfaced from its Brazilian projects.

Ballooning restructuring costs amounting to NOK467m continued to bother the shipbuilding firm, as it inches closer to its first year of loss since the 2008 financial crisis.

According to analysts from OCBC, Vard Holdings’ revenue saw a 19% drop to NOK2.27b, caused mainly by provisions related to projects at the Brazilian yards.

“Along with restructuring cost of NOK 36m (related to termination benefits and statutory payments for temporary lay-offs) in the quarter, Vard saw a net loss of NOK 486m in 3Q15 vs. a loss of 37m in 3Q14,” OCBC said.

Meanwhile, the losses were less of a surprise due to a profit warning issued by Vard earlier.