Keppel Corp’s offshore unit Keppel Fels has secured 2 new contracts worth US$101m to complete and refurbish 2 semi-submersible drilling rigs for Saipem SpA & Ensco. The new jobs will lift its ytd order wins to $2.37bn vs $1.7bn fow hole of 2009. However, note that 70% of the orders were clinched in 1Q10 & with the Petrobras tender now delayed till Nov or possibly next year, the aggressive 2010 order assumptions of $3-4bn chalked in by most analysts look increasingly difficult to attain.
Unexciting valuations at 11.8x FY10, dropping to 13x in FY11. Stock still trapped in tight $8.92-9.24 trading range.
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