Keppel Corp: awarded a repeat high-spec rig order from Transocean worth US$195m, as the latter exercises 1 of its 3 options granted in Feb ’11. Delivery is scheduled for 3Q13.
KEP’s order book stands at ~$9.3b. Ytd, KEP has won orders for 22 rigs, with order wins amounting to $7.7b, making 2011 its best year ever. In addition, KEP still has 13 options outstanding worth ~$2.8b. It is likely that KEP will meet Street orderbook forecasts of $8.5-10b for FY11E.
CIMB reiterates Outperform with TP $14.10, says KEP is one of its “must-own” blue chips at any bottom of the market on the back of its strong orderbook, reputable corp governance and low gearing. Continues to anticipate catalysts from stronger-than-expected new orders, margins and upside from Petrobras.
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