Vard (formerly: STX OSV)

[Salty]

This cow needs time to re-establish its milk.
Got milked dry by parent and sold away.

Poor company.
Hope this new parent will give them new grass(customer base) to eat.

[CY09]

So what are the other investment merits of STX OSV?

Besides having enough operating cashflow for dividends and being a market leader in a segment of the OSV industry

[KopiKat]

This cow needs time to re-establish its milk.
Got milked dry by parent and sold away.

Poor company.
Hope this new parent will give them new grass(customer base) to eat.

Looking at the just posted Offer Doc, it looks like the new parent also needs the milk badly....

See Rationale on pg 9 & P&L on pg25 (Losses in 2009 & 2010; microscopic profit in 2011)....

[Salty]

I bursted out laughing ahaha
The GO should be the other way round

[KopiKat]

.

However, company has not clinched contracts for last quarter. Could be due to the takeover happening.
Outlook for this year is not rosy as there's not enough contract clinched.

.

They heard you...

STX OSV SECURES CONTRACT FOR ONE OFFSHORE SUBSEA CONSTRUCTION VESSEL FOR SOLSTAD OFFSHORE

Singapore, 14 February, 2013 – STX OSV Holdings Limited (“STX OSV”), one of the major global designers and shipbuilders of offshore and specialized vessels, is pleased to announce that it has secured a new contract for the design and construction of one Offshore Subsea Construction Vessel (“OSCV”) for Solstad Offshore. The value of the contract is approximately NOK 600 million.
.
Delivery is scheduled from STX OSV Aukra in Norway in 2Q 2014...

[Salty]

Valentine present from the cow

[KopiKat]

Valentine present from the cow

One more present before Valentine's over...

STX OSV SECURES CONTRACT FOR ONE OFFSHORE SUBSEA CONSTRUCTION VESSEL FOR FARSTAD SHIPPING

Singapore, 14 February, 2013 – STX OSV Holdings Limited (“STX OSV”), one of the major global designers and shipbuilders of offshore and specialized vessels, is pleased to announce that it has secured a new contract for the design and construction of one Offshore Subsea Construction Vessel (“OSCV”) for Farstad Shipping (“Farstad”).
This newbuilding, designed for subsea and IMR (Inspection, Maintenance and Repair) operations, is part of Farstad’ Shipping’s fleet development within the subsea market. The value of the contract amounts to approximately NOK 800 million.
.
Delivery is scheduled from STX OSV Langsten in 1Q 2015....

[Nick]

STX OSV SECURES CONTRACT FOR ONE OFFSHORE SUBSEA CONSTRUCTION VESSEL FOR DOF SUBSEA

http://info.sgx.com/webcoranncatth.nsf/V...2005557D4/$file/STX_OSV_secures_contract_for_OSCV_for_DOF_Subsea.pdf?openelement

Haha and another too !

(Not Vested)

[Salty]

Champagne + chocolate + flying kiss.
Showing their new parent they are still working even in V-day
They quickly announce the contracts before the prices hit 1.22..they also don't want to take over 100%.

On the serious note, I almost sold out after management says that yard will be under utilise because not enough contracts.
Funny, it just came all at once with a 3 hit combo.
The irony of myself following a stock too closely.
Hope they are not all super lows margins just to fill the yards.

[KopiKat]

DMG-OSK report from remisiers.org,


Three New Orders; Cut EPS, TP on Low 2012 Wins

STX OSV secured three new orders for offshore subsea construction vessels with an estimated value of NOK2.4bn (USD433m). We view the new orders positively as the vessels are based on STX OSV's designs and margins on these orders could surprise on the upside. However, we lower FY13-14F EPS by 4.5% and 8.7% respectively as 2012 new order win of NOK9.5bn was lower than our estimate of NOK12bn. Consequently, we lower our TP from SGD2.05 to SGD1.96. Our TP is based on 12x FY13F P/E. We believe minority shareholders should not accept the cash General Offer from Fincantieri at SGD1.22/share as we think the offer undervalues the stock.

Secured three OSCV orders valued at around NOK2.4bn. STX OSV secured three new orders: i) one offshore subsea construction vessel (OSCV) (overall length of 121m and beam of 23m) for Solstad Offshore for NOK600m (USD108m) to be delivered in 2Q2014. The vessel will be based on STX OSV's OSCV 03 design; ii) one OSCV (overall length of 143m and beam of 25m) for Farstad Shipping for NOK800m (USD144m) to be delivered in 1Q2015. The vessel will be of STX OSV's OSCV 07 design; iii) one OSCV (overall length of 161m and beam of 32m) for DOF Subsea to be delivered in 1Q2015. Value of this contract was not disclosed. The vessel will be based on STX OSV's OSCV 12 design. We estimate the DOF order to be worth NOK1bn (USD180m).

New orders lifted unbilled order book to NOK20.1bn. As of end 3Q12, STX OSV has an order book of NOK16.4bn. Since then, the company has secured NOK3.7bn new orders for five offshore subsea construction vessels, lifting its unbilled order book to NOK20.1bn.

Earnings: Cut FY13-14 EPS by 4.5-8.7% on lower FY12 order win. We lower FY12 EPS by 4.5% and FY14 EPS by 8.7% as 2012 new order win of NOK9.5bn was below our estimate of NOK12bn. We also lower FY13 new order win from NOK15bn to NOK12bn. We are expecting blended EBITDA margin of 12.7% in FY13.

Valuation: We cut our TP from SGD2.05 to SGD1.96 after we revised down our FY13F EPS. Our TP is based on 12x FY13F P/E, 25% discount to our target P/E for rig builders, and implies 58% upside from its last closing price. Key risks to our view are: i) successful privatization by Fincantieri; ii) slowdown in new orders; and iii) project execution risk.

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For Reference, taken from Q312 Presentations (pg 7),

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