Contract cancelled for subsea newbuilding at Havyard

Contract cancelled for subsea newbuilding at Havyard

An unidentified shipowner has cancelled its contract for a subsea vessel being built at Norway’s Havyard Ship Technology, “in light of the continuing challenges in the offshore market internationally”.

The Havyard 858 WE subsea vessel (known as building no. 123; pictured) was ordered in July 2015 for around NOK 700m (then $88.8m). In October, it was announced its delivery had been delayed from Q2 2017 until Q2 2018.

“The agreement involves payment of compensation to Havyard,” the shipyard said today. The cancellation is not expected to affect Havyard Ship Technology’s profits or liquidity during the financial year 2016.

“The cancellation will, however, lead to a lower activity and a smaller margin loss in Havyard Design & Solutions for 2016,” the exchange filing said.

The Havyard 858 L WE is designed for IMR and light construction work on subsea installations.

Holly Birkett

Holly is Splash's Online Editor and correspondent for the UK and Mediterranean. She has been a maritime journalist since 2010, and has written for and edited several trade publications. She is currently studying for membership of the Institute of Chartered Shipbrokers. In 2013, Holly won the Seahorse Club's Social Media Journalist of the Year award. She is currently based in London.

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