STX OSV now VARD
Vard Holdings, previously known as STX OSV Holdings, sunk to its 52-week low on Friday to close at $1.065. The 4.1% decline came although the STI ended positive 0.3% for the day. Looking at the month of April, its shares have fallen 12.7% even when the broader index gained 1.2%.

Previously, STX OSV received a mandatory cash offer at $1.22 from Italian shipbuilder, Fincantieri, with members of the public indicating that the offer price was too low. Most shareholders rejected the offer price, leading to a failed takeover by the acquirer.

Subsequently, STX OSV rebranded and adopted a new name, VARD holdings on 23 April. According to the company, it derived its new name from a Norwegian word, "Varde" which refers to a small tower of stones which were used as a navigation mark in the past. Its name is apt considering that 66.7% of its order book in 2012 came from Norway/Romania.

The management mentioned that although the order book in 2012 was below expectations, it was still satisfactory. They continued to be optimistic going forward even with the increased competition in the offshore shipbuilding market. Their confidence stems from VARD's ability to cater to the growing demand for advanced and customized projects.

Another contract for VARD?
Just last week, VARD announced that it has a contract with Simon Møkster Shipping for the design and construction of one Platform Supply Vessel (PSV). The shipbuilding contract for the design and construction of the vessel is expected to be entered into within a few weeks.

Keppel's profits falls sharply
Keppel Corporation Ltd, the world's largest offshore oil rigbuilder, reported a 56% drop in quarterly net profit from S$751 million a year earlier to S$331 million after excluding one-off gains from the sale of Reflections at Keppel Bay. The management had previously highlighted in 2012 that the stellar results back then were unlikely to be repeated for 2013.

In 1Q2012, more than half of the profits came from its property segment whereas for this quarter, the bulk of profits came from the Offshore & Marine segment which accounted for 63%. Since 2000, Keppel Corp has delivered about half of the world’s jackups, the company reported. The current net order book stands at S$13.1b, with deliveries well into 2019.

Friday's closing price at $10.84 means the stock has declined about 6% since it reached $11.59 on 11 March 2013, which was within touching distance of a 5 year high at $11.69 on 28 April 2011.

New JV to harvest minerals in sea
Most recently on 22 April, Keppel Corp announced that its wholly-owned subsidiary, Ocean Mineral Singapore Holding has entered into a joint venture agreement with UK Seabed Resouces and Lion City Capital Partners on 19 April. The primary business revolves around the exploration and harvesting of rich minerals in seabed rocks. The company has pointed out that this transaction is not expected to have a material impact on the net tangible assets or earnings per share of the company for the current financial year.

Source: Macquarie Research - 29 Apr 2013