Havyard Ship Technology, a part of Havyard Group, has agreed with its client to cancel the shipbuilding contract for the new subsea vessel, building no. 123, due to the challenging offshore market.
In October last year, both parties agreed to put off the delivery and that the buyer had the right to cancel the contract in March 2016, provided it has in advance paid Havyard Ship Technology an agreed amount.
The Havyard 858 L WE design is developed by Havyard Design & Solutions in Norway. The vessel was designed to perform IMR (inspection maintenance and repair) and light construction work on subsea installations.
The agreement for construction of a newly developed Havyard 858 L WE design, had a value of approximately NOK 700 million (USD 89 mln).
“Planned delivery of the vessel was set to Q2 2018, and will therefore have no affect for liquidity and profits in Havyard Ship Technology AS for the financial year 2016. The cancellation will however lead to a lower activity and a smaller margin loss in Havyard Design & Solutions AS for 2016,” the company said in a stock exchange announcement on Wednesday.