KepCorp

KepCorp: Order momentum continues after Keppel FELS Brasil secured a US$200m FPSO topside contract from MODEC and Toyo Offshore Production Systems, which is scheduled for completion by 2Q14. Contract is not expected to have a material impact on NTA or EPS for FY12. Orderwin comes on the back of previous day contract win of a US$242m jack up contract from Burgylau LLP for a KFELS B Class jack up and brings Ytd Orderwin to approx. $7.6b (including 5 semi-subs LOIS with Sete Brasil). Current orderbook at approx $13.8b underpins earnings visilibity till 2015. On a separate note, grp announced that it has increased the limit of its Medium-Term notes from US$1.2b to US$3b, and net proceeds will be used for general corporate or working capital purposes. We note latest program would increase grp’s cash hoard to approx. $5.5b. Ratings as follow: Citi maintains Buy with $12.80 TP. CIMB maintains Buy with $14.80 TP