Losses on four electric ferries for domestic operator Fjord 1 are adding to the woes of Havyard Ship Technology (HST), the shipbuilding unit of the listed Norwegian shipbuilding and maritime technology group Havyard ASA (HGR).

“In connection with the review of updated project forecasts for HST's vessels under construction, as well as an overall assessment of HST's financial position, the respective Boards of Directors of HGR and HST have noted further losses on the projects with hull no. 131 and 135, and now also for hull no. 141-145. As a result, HST's equity is lost and furthermore, there are now also breach of covenants as of Q3 2019,” Havyard said. The hulls number 131 and 135 are not passenger vessels.

“As a consequence of the above, meetings have been held with banks and guarantors to ensure completion of ongoing projects at HST. Furthermore, a dialogue will immediately be initiated with customers and suppliers where the aim is to ensure outfitting of projects under completion at HST, and to find satisfactory solutions for other projects,” Havyard continued.

“Work on continued operations will be maintained on a secured basis (cash settlement or bank guarantee), so that the creditor's current positions will not deteriorated. For debts accrued as of today, the Board of Directors of HST has introduced a payment suspension until further clarifications has been made.”

“As part of the further work, an analysis will also be made of the consequences that the loss of equity in HST will have for the consolidated Group, which is expected to be reported when presenting the accounts for Q3 2019,’ Havyard stated.