Vard Holdings Limited (VARD) continued its order wins momentum, announcing that it has secured contracts with an undisclosed customer for the construction of two offshore support vessels worth close to NOK600m in total. The vessels are scheduled for delivery in 3Q15 and 4Q15 from one of its yards in Norway. This follows up from its recent announcement on 11 Mar that it had entered into a Letter of Intent (LOI) with Solstad Offshore for the design and construction of a large Offshore Subsea Construction Vessel (OSCV), which is VARD’s largest single vessel order in its history. We estimate that VARD has already clinched ~NOK4.45b of orders YTD. For now, we have a HOLD rating and S$0.84 fair value estimate on VARD.

Source: OCBC Research - 13 Mar 2014