Havyard loses more than a third of its value after €10 million negative accounting effect

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Shipyard group shakes on the stock exchange.

On Thursday night after the Oslo Stock Exchange closed, Havyard announced in a financial statemen that after the presentation of the accounts for the fourth quarter, deviations were uncovered, which in total have given a significant negative accounting effect for 2018’s financial statements. It’s currently estimated at approximately EUR 10 million compared to the reported figures.

The overall effect is expected to result in the company being in breach of covenants in terms of equity and working capital.

The deviations mainly relate to two major prototype projects at Havyard Ship Technology’s shipyard in Leirvik, where projects are still ongoing. When reviewing other ongoing projects, no deviations of significance have been found.

Furthermore, it has been discovered that there was no basis for further operations in a French subsidiary which has activities towards a French shipyard. It has also been uncovered that it will be necessary to make certain impairments of financial assets.

However, dialogue with lenders has been initiated to minimize the effects of such breach. In addition, internal measures have been initiated, and the company is in good dialogue with customers, the company wrote in the statement.

On Friday’s opening on the Oslo Stock Exchange, the share price in Havyard dropped. The share is down 37 per cent, and last traded for NOK 5.44.

Havyard is a major supplier to the aquaculture industry and currently is equiping Sølvtrans’s new wellboat, the largest ever made, the “Ronja Storm”.