Vard Holdings reported a 14.6% YoY rise in revenue to NOK 3,063m but saw a 92.7% fall in operating profit to NOK 9m in 1Q15, due to weaker than expected performance at some of its yards. EBITDA margin fell from 6.4% in 1Q14 to 2.1% in 1Q15, and with restructuring cost, the group incurred a net loss of NOK 92m in the quarter vs. 92m PATMI a year ago.

We judge this to be below the street’s expectations as consensus net profit for the full year was NOK 379m prior to this results announcement. Meanwhile, new order prospects continue to be weak in the near and medium term. There will be an analyst briefing later, and our Hold rating on the stock is currently under review.

Source: OCBC Research - 13 May 2015