Vard Holdings, a company building offshore support vessels for the international oil and gas industry, has issued a profit warning for the third quarter and the full year 2015.
In a statement on Thursday, signed by the company’s CEO Roy Reite, the company said it expected the 3Q and end of the year results to be materially affected by the operational challenges at the Brazilian shipyards of the group, combined with the negative trend in the Brazilian economic and political environment. The Singapore-listed company’s shares fell 8.4 percent following the announcement.
“The details of the Group’s performance will be disclosed when it announces its unaudited financial results for 3Q 2015 on 11 November 2015. In the meantime, the Board of the Company wishes to advise its shareholders and investors to exercise caution when dealing in the shares of the Company,” Vard said in the statement.
To remind, in August 2014, Vard reported receiving a tax claim from tax authorities in Brazil, of approximately NOK 200 million ($25M), including penalties and interest accrued, for FY2010.
In May 2015, the company re-designated Jan Ivar Nielsen as a Finance Officer in Brazil saying it wanted to strengthen the organization there while it was in a critical phase, adding that stabilization of the Brazilian operations remained its top priority.
The company in July announced a round cost-cutting measures including layoffs, citing lack of orders in the second quarter.