Vard Holdings Limited (VARD) announced that it has won a contract for the design and construction of a Platform Supply Vessel (PSV). This is a repeat order for a vessel of the same specification for Carlotta Offshore. 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 in 3Q15 from VARD’s Vietnam yard.

Although the value of the contract was not disclosed, we believe it is worth NOK300m. This brings its YTD order wins to ~NOK5.8b, based on our estimates. We maintain our HOLD rating on VARD, as its share price is trading close to our fair value estimate of S$0.97 (pegged to 9x FY14F EPS).

Source: OCBC Research - 20 May 2014