Vard loses E.R. Offshore contracts

Oslo: Waiting till late in the night on Friday, Norwegian Vard quietly sent out a release informing that two affiliates of E.R. Offshore,  who have orders at one of their yards, has have filed for insolvency at a local court in Germany.

Vard is currently constructing one PSV for each of these companies at its shipyard in Vung Tau, Vietnam.

In mid-June last year E.R. Offshore ordered a  PSV from Vard Vung Tau  with delivery scheduled for mid-2016. At the same time the German owner took over a contract for a sister vessel from Carlotta Offshore via a novation agreement with delivery meant for the third quarter this year.

Vard has received a 10% installment for one of the  two vessels and the group does not expect to repay that. The offshore vessel specialist expects to be able to sell the vessels at a price that will cover the expected construction cost, less the prepayment received.

“The impact of the termination and the proposed resale should not change earnings per share for the financial year,” Vard explained.

Vard operates shipbuilding facilities in Norway, Romania, Brazil and Vietnam.

Hans Thaulow

Hans Henrik Thaulow is an Oslo-based journalist who has been covering the shipping industry for the last 15 years. As well as some work for the Informa Group, Hans was the China correspondent for TradeWinds. He also contributes to Maritime CEO magazine. Hans’ shipping background extends to working as a shipbroker trainee with Simpson, Spence & Young in Hong Kong.
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