Keppel Corp

Keppel Corp: Announced that it has finally firmed up and made effective its initial Petrobas LOIs, to build five semisubmersible drilling rigs for US$4.1b. We note that this would bring grp’s Ytd orderwins to $7.2b ($10b in 2011) and places grp’s orderbook at approx. $12.8b, underpinning earnings visibility till 2015. We note that this could signal the long-awaited contract flow from Sete Brasil is about to begin and investors would look out for SembMarine as well. Ratings as follow: DMG maintains Buy with $13.80 TP. OCBC maintain Buy with $13.34 TP.