Vard Holdings Limited (VARD) announced that it has secured a contract for the design and construction of one Offshore Construction and Anchor Handling Vessel worth NOK800m for Rem Offshore. This is VARD’s fifth order win since the start of 2Q14 and brings its YTD order wins to an estimated ~NOK8.2b. This latest vessel will be built in accordance to VARD’s internal design, with delivery scheduled in 1Q16 from one of its Norwegian yards. It has a bollard pull of 400 tons and has the ability to meet the demanding operations in the deepwater segment and winterised zones.

We believe this contract win is a testament to VARD’s strong shipbuilding capabilities within the high-end specialised support vessels segment. Our last rating on VARD was a HOLD with a S$0.97 fair value estimate and we will be reviewing our recommendation.

Source: OCBC Research - 5 Jun 2014