Vard sinks into the red with $97m net loss in FY15

Blame it on loss provisions for projects in Brazil.

Vard Holdings has sunk into the red as it booked a full year net loss of NOK603m, or around $97.93m. According to OCBC, this is on back of loss provisions related to projects at Brazilian yards.

Vard was also hit by a 29% YoY crash in revenue and a net loss of NOK83m in Q4.

Meanwhile, the rest of the group contributed with a positive earnings before interest, tax, depreciation and amortisation (EBITDA) both in the Q4 and the full year. The company also saw impairment charges of NOK23m in Q4 related to assets in Vard Niteroi.

Moving forward, the company is bracing for FY16 revenue to tumble between eight and nine billion NOK, with a positive EBITDA margin.

Further, the company is counting on the implementation of a new business plan the expected recovery of the offshore market around 2018 to propel revenue back to previous highs of around 12 to 13 billion NOK by 2020.