Offshore shipbuilder and designer VARD is looking to diversify its business in order to reduce its offshore market dependency during industry downturn that dragged the company’s 4Q 2015 results down.
With its core market for offshore oil and gas related vessels showing continued signs of weakness in the short term, VARD said on Monday it would be focusing on other engineering and technology-intensive parts of the shipbuilding market.
The shipbuilder said it aims to preserve its core expertise and employee base during the downturn, and utilize its existing yard capacity until an eventual recovery in its core market.
Roy Reite, Chief Executive Officer and Executive Director of VARD, commented, “The Group’s efforts to diversify are well underway, and we believe that we are on the right track to recovery. If we succeed with our plan, VARD will not only be able to emerge from this downturn, but come out stronger and armed with new skills and capabilities.”
The company on Monday posted a loss for the period of NOK 170 million for the fourth quarter of 2015, compared to a profit of NOK 20 million in the same period of 2014.
VARD’s operating profit decreased from NOK 85 million in 4Q 2014 to an operating loss of NOK 67 million in 4Q 2015.
In addition, the shipbuilder posted a drop in revenues as the company’s 4Q 2015 result amounted to NOK 3.3 billion, while the 4Q 2014 revenues were NOK 4.5 billion.
Offshore Energy Today Staff