Vard

Vard: Secured new contract with Island Offshore for the construction of one offshore support vessel, totaling NOK 300m, scheduled for delivery in 1Q16. Aside, Goldman Sachs is saying that the market is currently missing the returns uplift, and upgrades its rating to Buy, citing that despite drilling slowdown in North Sea and potential Brazil tax provisions, valuations are at through and might be missing out the estimated 130 bps cash return on capital invested uplift in 2016 from Brazil ramp-up and improving Norway sales. Catalysts such as 1) Recovery in new orders momentum post recent slowdown given still growing drilling activity and oil and gas capex in North Sea, set against relatively healthy OSV demand-supply conditions, 2) improving margins as Brazil operations and sales ramp up, and 3) improving y/y results. Goldman Sachs has a TP of $1.01, upgrades to Buy from Neutral