VARD's order book totals NOK 10.6 bn for FY 2016

Vard Holdings Limited (“VARD”, the “Group”), one of the major global designers and shipbuilders of specialized vessels, yesterday announced its financial results for the fourth quarter ended 31 December 2016 (“4Q 2016”), and full year ended 31 December 2016 (“FY 2016”).
 
VARD’s order book grew by NOK 411 million over the past quarter, bringing VARD’s total to NOK 10.6 billion for the full year, surpassing new order intake for each of the previous two financial years (“FY 2014” and “FY 2015”). No new vessel orders were recorded in 4Q 2016, as the contract for two luxury cruise vessels for Hapag-Lloyd Cruises, confirmed in October, was previously accounted for in the preceding period (“3Q 2016”). Nonetheless, new order intake was buoyed by a steady flow of variation orders, repair and conversion works, as well as VARD’s success in its diversification into the aquaculture business. Order flow of vessel newbuilding projects has resumed after the end of the quarter with contracts announced for two ferries and one krill fishing vessel, and a Letter of Intent (“LoI”) for an expedition cruise vessel.  
 
As at 31 December 2016, the Group had an order book of 41 vessels, of which 35, or 85%, will be of VARD’s own design. This translates to a total order book value of NOK 12.6 billion as at 31 December 2016, representing a 24% increase from NOK 10.2 billion in FY 2015.

Norway based Vard Holdings Limited (“VARD”), together with its subsidiaries (the “Group”), is one of the major global designers and shipbuilders of offshore and specialized vessels used in the offshore oil and gas exploration and production and oil services industries. VARD employs about 11 people and operates ten shipbuilding facilities, including five in Norway, two in Romania, two in Brazil and one in Vietnam.