Vard plans to sell diving support vessel to customer

An aerial view of Singapore’s portAn aerial view of Singapore’s port

Vard Holdings said on Friday it signed an agreement to sell the diving support and construction vessel previously contracted to Harkand Group to an undisclosed international customer.

The original contract with Harkand was announced at the end of 2013, but in May 2016, Vard was notified that Harkand had entered into administration, it said in a filing to SGX after the market close on Friday.

Vard has cancelled the original contract with Harkand’s administration to facilitate the new sale agreement, it said.

“The sale of the vessel will allow Vard to reduce the capital employed by eliminating a vessel from its inventory and reduce its liabilities by reimbursing the related construction loan with a direct benefit from lower financial charges going forward,” it said.

In addition, by reimbursing the construction loan, Vard will benefit from the release of cash posted as collateral with the lending bank, which will positively benefit the company’s liquidity, it said.

The vessel is a Vard 3 03 design, and was equipped for diving and subsea operation duties, it said. It was outfitted with a 250-ton offshore crane and a twin bell 18-person saturation diving system, supporting split level diving operations to a maximum diving depth of 300 meters, it said.

The delivery is scheduled from Vard Soviknes in the first quarter of next year, with the vessel to be finalized, tested and prepared for operations in the interim, it said.

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