Vard Holdings reported a 19% YoY drop in revenue to NOK 2.27b, while EBITDA before restructuring cost was -NOK 467m in 3Q15, caused by loss provisions related to projects at the Brazilian yards. Along with restructuring cost of NOK 36m (related to termination benefits and statutory payments for temporary lay-offs) in the quarter, Vard saw a net loss of NOK 486m in 3Q15 vs. a loss of 37m in 3Q14. This was below our expectations but less of a surprise after Vard‟s earlier profit warning with regards to its results. Meanwhile 2015 is now likely to be the group‟s first year of loss after the 2008 financial crisis. Pending an analyst briefing later, we maintain our SELL rating but put our fair value estimate of S$0.41 under review.

Source: OCBC Research - 11 Nov 2015