Vard Holdings Limited (VARD) announced that it has won a contract for the design and construction of a Platform Supply Vessel (PSV) for Carlotta Offshore, a repeat customer. This vessel is a multifunctional PSV of VARD’s internal design, is ~4,000 DWT and will be used for standby, rescue, fire-fighting and oil recovery operations. Delivery of this vessel is scheduled for 2Q15 from VARD’s Vietnam yard. Although the value of the contract was not disclosed, we believe it is worth NOK300m. This is the second announced contract win by VARD within a week, and brings its YTD order wins to ~NOK2.4b (22% of our FY14 estimate), based on our estimates. We maintain our HOLD rating and S$0.84 fair value estimate on the stock (pegged to 8x FY14F EPS).

Source: OCBC Research - 12 Feb 2014