Tengizchevroil contract to add USD350mn revenues from 2H2018: Topaz will build 15 new specialised vessels for a total capex of USD300mn to operate in shallow waters for transporting large number of modules through the Russian river systems into the Caspian Sea and to Kazakhstan. This accounts to USD350mn of revenue to Topaz from the three-year contract signed with Tengizchevroil (TCO), which would kick start from 2H2018. Capex for these vessels is funded through the milestone payments received from the TCO, hence would limit the impact on Topaz balance sheet. Management expects a 70% EBITDA margin from the contract versus 60% average margin in other OSV contract in the Caspian region. Management mentioned it would depreciate these 15 vessels very aggressively compared to other OSV vessels and are hopeful of finding new contracts beyond TCO   Our view: We believe the TCO contract is positive for the share price as i) better EBITDA margin estimate versus its other OSV operations; and  ii) lower pressure from capex due to milestone payment agreement with TCO. However, there are a few challenges with the new contract as we suspect management’s aggressive depreciation plan could be due to the unique risk with these vessels due to limited applications, that would challenge vessels ability/time lag to find a new contract, in our view. Nevertheless, we believe the margin pressure will intensify at its current OSV operations over the coming quarters due to i) vessel utilisation becoming weaker in MENA sequentially and dayrate pressure is expected to intensify; ii) the impact from BP contract renewal will start from 2Q16, which would put pressure on dayrates in the Caspian; and iii) potential one-off cost related to vessel redeployment to Caspian, in our view. (Sameer Kattiparambil, company disclosure)   Renaissance: OMR0.300 as of 23 May 2016, Rating: Sell, FV: OMR0.188/share, MCap: USD223 mn, RNSS OM / RSC.OM