Vard

Vard: Secured an aggregate of NOK 6.5b worth of contracts in a JV agreement with DOF Subsea and Technip for the design and construction of four pipe lay support vessels. The four vessels will have an expected delivery between 2Q16 and 2Q17. This is compared to NOK 4b worth of orders secured year-to-date, and will bring order book to ~NOK20.5b. Two vessels of VARD 3 05 design will be built at its Romania yard, Vard Tulcea, and outfitted at Vard Soviknes, Norway. The expected delivery will be in 2Q16 and 3Q16. The other two vessels of VARD 3 16 design will be built at Vard Promar, Brazil, with an expected delivery in 4Q16 and 2Q17. Vard currently trades at 8x forward P/E and 1.4x P/B.