Keppel Corp

Keppel Corp: According to Upstream, a shortage of vessels equipped to work in the renewable offshore sector has spurred new building programmes, and green energy ventures in the US are turning to the offshore industry to acquire expertise needed to execute marine projects. This has resulted in opportunities for yards such as Kepcorp which has a significant presence in the US Gulf coast. KEP is well-positioned to tap the offshore wind sector - it has its own offshore wind turbine vessel design and the group has been expanding its capabilities in this area. Still the sector is a relatively new frontier for most countries and time would be needed for more orders to come. However, house appreciate KEP’s steady efforts to build up its capabilities to service the offshore wind industry which also has synergies with the offshore oil and gas sector. Overall, maintain BUY with fair value estimate of $13.38.