Vard increases stake in Brazilian shipyard Vard Promar

7 August 2016 (Last Updated August 7th, 2016 18:30)

Norway-based shipbuilding group Vard Holdings (VARD) has increased its ownership stake in its indirect subsidiary in Brazil, Vard Promar, to 95.15%.

Norway-based shipbuilding group Vard Holdings (VARD) has increased its ownership stake in its indirect subsidiary in Brazil, Vard Promar, to 95.15%.

Previously, VARD’s wholly-owned subsidiary, Vard Group, along with a local partner, PJMR Empreendimentos (PJMR), held a 50.5% and 49.5% stake respectively in Vard Promar.

With the deal VARD aims to remain a major player in Brazilian shipbuilding, supporting the local oil and gas industry as well as increasing its presence in the country.

"VARD aims to remain a major player in Brazilian shipbuilding, supporting the local oil and gas industry."

Built between 2011 and 2013, the shipyard has so far delivered one liquefied petroleum gas (LPG) carrier for Transpetro, and is in the final stages of construction of a second one.

Additionally, the yard has two more LPG carriers on order, along with two advanced pipelay support vessels (PLSV) for a joint venture between DOF and Technip.

VARD noted that the recent closure of the Vard Niterói shipyard led the company to focus its Brazilian shipbuilding activities on the new yard, located in the Suape industrial area, in the state of Pernambuco.

During the ramp-up stage, Vard Promar was in need of financing requirements, which were mainly funded by VARD through shareholder loans.

The increase in shareholdings comes from a capital increase in Promar and is entirely taken up by Vard Group through the alteration of shareholder loans into newly issued equity, with no cash consideration.

Last month, Vard won a contract worth around $70m, to design and construct three vessels for an undisclosed client.