Brokers' take

Offshore and Marine | Neutral

CIMB Research, Oct 15

Vard Holdings (Reduce, target price: S$0.35) has issued a profit warning for its earnings for Q3 2015, which will be released on Nov 11, and FY15. Vard's Brazilian operations have been struggling, especially Vard Promar which has been weighed down by delays for the LPG carriers and slow ramp-up.

For both Keppel Corporation (Add, target price: S$7.46) and Sembcorp Marine (Reduce, target price: S$2.18), although execution risks for Sete Brasil could be limited, the depreciation in the Brazilian real could further hinder negotiations for construction outstanding payment for the drillships and semi-submersibles being built. The Brazilian real ha…