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Vard To Place Its Troubles Behind it
Tradeable, Tradeable Ideas | 19 June 2014
By: Raymond Leung
Articles (142) Profile
  1. Vard boasts a portfolio of proprietary OSV designs that are popular with the industry.
  2. It is coming out of recent troubles at its Brazilian yards and could present much value to investors at currently depressed prices.
  3. According to our estimates, Vard’s total order book value stands at NOK$34.3 billion (est. $7 billion).

Source: FactSet, a graphical representation of analysts’ calls on Vard

Vard Holdings (Vard) is a global leader in building offshore support vessels (OSV). The firm has a profile of OSV designs that are proprietary to Vard and are popular in the industry.

This has led to a preference for Vard’s vessels in the industry resulting in a high order book and strong contract win momentum. Currently, the firm’s total order book value is estimated by us to stand at NOK$ 34.3 billion.

Vard is expected to have moved on from the troubled period involving its Brazilian shipyards.

Vard’s Niteroi shipyard

Losses from these shipyards have been tapering as the Niteroi shipyard returns to its schedule while the new Promar Shipyard reaches its final stage in construction.

Brazil is a niche market for Vard as it has a significant presence in the country in contrast with its competitors.

The strict regulations enforced by the Brazilian government to have locally sourced equipment and robust offshore oil & gas industry in the country will give Vard an edge over its competitors.

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Trained in fund management, Raymond is familiar with shares and various investment vehicles.

Please click here for more information about this author.

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