Keppel Corp

Keppel Corp: Ezion indicated that it is planning to use Keppel Verolme in the Netherlands for the refurbishment and upgrading of an old rig. Once complete, the unit would be dismantled and shipped in parts through sea and land to Keppel’s Baku shipyard in the Caspian Sea where it would be re-assembled before deployment. Deutsche highlights not many yards are capable of handling such challenging projects and is a testament to KEP’s expertise. Notes KEP’s strategy to be near its customers and mkts has also benefited it in Brazil, where the group is currently one of the most experienced offshore yards in the country. Sees KEO as wel positioned to benefit from any upgrade, replacement and new build opportunities in the O&M sector. Reiterates Buy with TP $13.70.