Havyard has reported a second-quarter loss, despite cutting its working week and diversifying production amid a tough market for offshore services.
The listed Norwegian shipbuilding group posted a second-quarter net loss of NOK14 million (USD1.7 million), reversing a profit of NOK15 million a year earlier, while its revenue slipped to NOK354 million, down from NOK696 million.
“Challenging times for our customers within the offshore market give low expectations of new orders in this segment,” the company said in a statement.
“Implementation of a four-day working week was successful but not sufficient to adapt capacity to the workload in the period.”
The company added that it would continue to downsize, which would take full effect from the start of next year.
Under a diversification strategy Havyard has developed and delivered products for fisheries and aquaculture as well as the renewable energy sector, aiming to exploit a competitive advantage over new entrants to these markets.
“The group as a whole depends on new order intake in most segments to fill capacity for the coming periods,” said Havyard.
“We will continue to strengthen our competitiveness through restructuring, rationalisation, and downsizing for adapting the capacity. The effects of the downsizing will have full impact from the start of 2016.”
In the first half, the group’s profit of NOK14 million was down from NOK43 million a year earlier, while revenue slipped to NOK917 million, down from NOK1.13 billion.