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Fincantieri injects capital into Norwegian yard after new major deficit

Last year Norwegian shipyard Vard lost a little over NOK 2 billion, reports Finansavisen. Owner Fincantieri has put up fresh capital, according to the newspaper.

Photo: PR/Vard

Italian Fincantieri has again injected capital into yard group Vard, which exits 2019 with a large billion dollar deficit in Norwegian kroner.

According to Norwegian media Finansavisen, Vard lost NOK 2.2 billion (USD 243.9 million) last year. Altogether, the yard's losses in the past six years total NOK 7.4 billion, while its equity stood at negative NOK 2.3 billion at the end of last year.

However, Fincantieri has said that it will put up a loan for Vard of EUR 290 million, corresponding to around NOK 3.1 billion. And last year Fincantieri injected equity into the yard for NOK 900 million, along with a similar-sized loan to the Norwegian company.

According to the newspaper, the yard says that it is sufficiently financed, and that the liquidity budget covers the period until 2021. Furthermore, Fincantieri has guaranteed more capital if needed, reports Finansavisen.

At the end of 2019, Vard's short-term group debt stood at NOK 3 billion, while bank loans total NOK 3.8 billion, according to the Norwegian media.

English Edit: Daniel Logan Berg-Munch

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