A Review of the Nigerian Energy Industry

Norway’s Havyard wins Brazil design gig

Samsung Yard, South Korea29 August 2014, News Wires – Norwegian vessel designer and builder Havyard has secured a deal to provide ship design and equipment for four newbuild anchor-handling tug supply vessels with Brazil’s Grupo CBO.

The award, which marks a breakthrough for the company in the Brazilian market, was described as the single biggest contract won by its design & solutions unit, although the value was not disclosed.

The workscope will include delivery of integrated automation and alarm systems, power management systems, and navigation and communications equipment.

Havyard saw its pre-tax profit slashed more than fourfold in the second quarter to Nkr15 million ($2.4 million), from Nkr67 million a year earlier, as it was hobbled by higher operating expenses of Nkr675 million, despite a 14% year-on-year increase in revenue to Nkr696 million due to increased capacity utilisation at its Leirvik yard.

The company said in a statement that margins were negatively impacted by higher costs related to construction of vessels with new designs, rather than repeats of existing blueprints, particularly for its ship technology unit.

Sale of equipment packages with typically lower profitability and reduced margins from contracts entered into in a weaker market environment also hit earnings, according to Havyard, which was recently listed on the Oslo bourse.



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