Vard slapped with contract termination of two LPG carriers

They are the last two of eight for delivery.

Vard’s exposure to the Brazilian market is bound to take a hit if the contract terminations with Transpetro are to push through.

According to a statement by Vard Holdings, Transpetro has terminated the contracts for two Liquefied Petroleum Gas (LPG) carriers on order from Vard Promar SA, a 50.5% owned indirect subsidiary of the Company.

The two vessels are the last two of a series of eight LPG carriers originally contracted in June 2010, slated for delivery between 2014 and 2016, said the statement.

“The combined contract value for the series of eight vessels was USD 536 million. Construction of the two vessels is at a very early stage,” the statement added.
Meanwhile, Vard says it also intends to claim compensation from Transpetro for damages caused by the terminated contracts.