Vard (formerly: STX OSV)

[Greenrookie]

Altho' Vard is in a cyclical industry, they do have an order book visibility (NOK15.45Bil as of Q113). What this means (to me) is some stability in Revenue eg. for FY10 to FY12, it was rather flat. However, the cyclical aspect will most likely affect their profit margins. I looked at the past 3 years,

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After looking at their figures and forward statements, I was hoping Q412 to have been a bottom, with Q113 being the start of an upcycle. However, with the latest Profit Guidance, due to the Brazil operations, we'll most likely not see a better NPM for the coming Q213. IMO, an NPM = 7.7% for FY13 would be on the optimistic side. Most likely, it's going to end up on the wrong side of 5%....

PS. Vard is also in an industry that's outside my circle of competence... I'm just looking at numbers plus picking up OSV knowledge on the go... Rather educational and interesting...

Any ideas among the various vessels Vard are building, which ones are the high margin ones?