Vard

Vard: Announced that it has secured a new contract for the design and construction of one Offshore Subsea Construction Vessel (OSCV) for Farstad Shipping. The value of the contract amounts to ~NOK800m and is scheduled for delivery in 3Q15. We note that the latest orders lifts Vard’s order book to ~Nok21b, underpinning revenue visibility over the next 3 years. If Vard is able to keep up their current order momentum and turn around the troubles in their Brazilian yards, we would not be surprised to see share price rerate upwards.