VARD

VARD: Secured NOK400m contract from Island Offshore for the construction of an advanced offshore support vessel. The vessel is scheduled for delivery from Vard Brevik in Norway in 1Q2015, while its hull will be delivered from Vard Braila in Romania. Island Offshore had been a longstanding customer of Vard with over 30 vessels delivered to the group and five currently under construction. This new order brings the group's orders-to-date to approximately NOK12.4b, the largest annual order since 2007. In a previous note, Maybank KE highlighted that “the worst is over” for the counter; reiterates its Buy rating with $1.04 TP, pegged to 8x average FY13-15 P/E.