Moreld-Firms up Vår contract; derisking 2027 estimates-06/26/2026

Research evidence excerpt

Moreld-Firms up Vår contract; derisking 2027 estimates-06/26/2026

Moreld

NEWSFLASH | 26 JUN 2026

Firms up Vår contract; derisking 2027 estimates

Moreld subsidiary Ocean Installer has been awarded a major SURF contract by Vår Energi on the Balder Next project. The

award was expected, but the contract value was larger than assumed. The contract significantly derisks 2027 estimates,

with risk increasingly skewed to the upside. With the company trading at >20% FCF yield, expectations are arguably low

and improved visibility positive. BUY, TP NOK 26

Firms up major contract with Vår Energi

• Moreld subsidiary Ocean Installer has been awarded the SURF installation contract for the Balder Next New Wells project on the NCS,

sanctioned by Vår Energi earlier this month. This adds to its previously awarded pipeline EPC contract for the Balder Next project (awarded

in Q4’25)

• The total contract value is expected to be NOK ~2.5bn, with further options (NOK ~0.5bn). This is above our initial expectation. The project

is fast tracked, with the majority of the subsea work in 2027 (~75% of firm value)

2027 shaping up well for Ocean Installer; estimate risk on the upside

• Including this award, Ocean Installer has ~70-75% revenue coverage in 2027e, utilizing ~50% of budgeted vessel days (on a 300-day

basis). As previously noted, we believe the company is also well positioned for a (large) SURF contract at Equinor at Troll 3 stage 3 (TWIN)

project, with execution likely 2027-28 (Ocean Installer currently working on stage 2)

• In sum, 2027 thus is shaping up to be a strong year, with Ocean Installer also having secured smaller contracts and some Q1 utilization

(unlike 2026). We see estimate risk skewed to the upside, currently discounting NOK ~700m in EBITDA (vs NOK 835m in “strong” 2025