Keppel Corp

Keppel Corp: secures two contracts worth a total of ~US$950m from Petrobras, for the fabrication and integration of topside modules on the FPSO P-66 and P-69. Petrobras has an option for a similar contract to be exercised by 1Q14. The FPSOs will have identical work scopes which incl the fabrication and integration of 7 topside modules. When completed, one will work in the Guara field and the other in the Tupi field in offshore Brazi. Both FPSOs will each have a pdtn capacity of 150k bopd. This brings KEP’s ytd order wins to $12b, eclipsing SMM’s ytd order wins of $8.2b. With an extended orderbook visibility until 2019, both rig builders continue to be Street favorites. SMM has 22 Buy and 4 Hold ratings with TP btwn $4.40 - $7.00. KEP has 23 Buy, 2 Hold and 1 Sell rating with recent TP btwn $12.05 – 14.80.