Vard (formerly: STX OSV)

[Devil]

Too bad. The price dropped 6%. Looks like Brazil needs some funds.

NOK 200 million over 1180 million shares, is only SGD0.033. To drop by 6%(about SGD0.07), the market appears to have overreacted to the news

[GPD]

Too bad. The price dropped 6%. Looks like Brazil needs some funds.

NOK 200 million over 1180 million shares, is only SGD0.033. To drop by 6%(about SGD0.07), the market appears to have overreacted to the news

Since this is likely to affect EPS, then you should also apply the PE multiplier which you might then argue that the market reacted leniently to the news.

[specuvestor]

Totally agree with GPD, I hear this type of assertion mostly on banking sector ie soured loan book is only so small, but forgetting the leverage and PE

[valuebuddies]

PROFIT GUIDANCE FOR 3Q 2014 ENDING 30 SEPTEMBER 2014

During the third quarter, the overall performance of the European shipyards was stable and the Group benefits from the close cooperation between its Romanian and Norwegian yards. Nevertheless, the Group has revised its estimates for a limited number of projects in its European order book where cost overruns were incurred. As a result of mitigating actions taken, no impact on the delivery schedule is expected.

Resulting from the above, the Company expects a marginally negative EBITDA result for the third quarter ending 30 September 2014 (“3Q 2014”).

http://infopub.sgx.com/FileOpen/Profit_G...eID=318182

Vard is down 15% to its historical low point post IPO.

[not vested]

[Greenhorns]

From my understanding to this announcement, seem like they "prata' with their words. Because of the profit warning, no provisions will be made for this quarter. But they can make provision in subsequent quarters.

What more, management had keep emphasized about stable operation across the regions except for brazil yards, but now they are opening up a whole cans of worm.

With the current situation of lower demand for oil, the on going brazil yards issue, and the unclear direction from management, it is better to stay clear of this counter.

PROFIT GUIDANCE FOR 3Q 2014 ENDING 30 SEPTEMBER 2014

During the third quarter, the overall performance of the European shipyards was stable and the Group benefits from the close cooperation between its Romanian and Norwegian yards. Nevertheless, the Group has revised its estimates for a limited number of projects in its European order book where cost overruns were incurred. As a result of mitigating actions taken, no impact on the delivery schedule is expected.

Resulting from the above, the Company expects a marginally negative EBITDA result for the third quarter ending 30 September 2014 (“3Q 2014”).

http://infopub.sgx.com/FileOpen/Profit_G...eID=318182

Vard is down 15% to its historical low point post IPO.

[not vested]

[valuebuddies]

the Group has revised its estimates for a limited number of projects in its European order book where cost overruns were incurred

That's already provisions! The management have been telling the shareholders that sufficient provisions were made and yet you will still see more and more provisions and same explanation every quarters.

Whereas with regards to the tax claim, no provisions were made for time being.

I would not rule out the possibility that the majority shareholder tries to depress the share price and after launch a GO at lower price and take the company private.

In accounting world, "creativity" lies behind the provisions and write/off. Even auditors would not be able to challenge on the provisions and write/off unless the auditors feel suspicious and hire an independent expert just to verify the appropriateness and sufficiency of the provisions and write/off.

Though the current depressed price is very tempting, with all these no-ending of provisions, I don't think I will trust these Italian any more.

[LLS]

down 22% today, omg

[valuebuddies]

We were far from being sufficiently pessimistic when we slashed Vard’s earnings forecasts earlier this week. Vard has just guided for “marginally negative” third-quarter EBITDA, surprising even our bearish case. We take a second swing at Vard’s earnings estimates, cutting FY14-FY16 forecasts by 32%, 22% and 25%. We believe its book value may not hold and that a multiple de-rating is possible. Downgrade to SELL with a lower SGD0.57 TP (vs SGD0.80), implying 30% downside.

http://www.remisiers.org/cms_images/rese...ldings.pdf

Another 8% off for the day

[ValueBeliever]

Can we say that all those other Co. that had entered the Brazil market face the same issue with labor and profitability issue?

Why would they be any different?

[greengiraffe]

http://www.businesstimes.com.sg/companie...in-revenue

Vard suffers Q3 net loss of 37m kroner despite 18.5% rise in revenue
By
Malminderjit Singhmsingh@sph.com.sg@MalminderjitBT
sgxvardshares1211.jpg Vard Holdings sank into the red with a net loss of 37 million Norwegian kroner (S$7.01 million) for the third quarter ended Sept 30 compared with a profit of 76 million kroner a year earlier. PHOTO: VARD
12 Nov5:50 AM
Singapore

VARD Holdings sank into the red with a net loss of 37 million Norwegian kroner (S$7.01 million) for the third quarter ended Sept 30 compared with a profit of 76 million kroner a year earlier, because of higher operating costs.

Revenue jumped 18.5 per cent year-on-year to