VARD Holdings reported a 35% YoY drop in revenue to NOK 2,150m and a net loss of NOK 67m in 4Q16, bringing full year net loss to NOK 197m vs. net loss of NOK 1,292m in FY15. Our earlier forecast was net loss of NOK 172m compared to the street’s forecast of NOK 147m.

At the end of 2016, order book amounted to NOK 12.65b, significantly higher than NOK 10.23b at the end of 2015. With the first cruise vessels moving into production stage, the group is in the midst of implementing its diversification strategy.

New project opportunities continue to arise from non-offshore markets, including expedition cruise and fisheries. Our Hold rating and fair value estimate are currently under review.

Source: OCBC Research - 1 Mar 2017