Keppel Corp

Keppel Corp: signs a contract with Ukraine’s Neftogaz to construct 2 semisub drilling rigs worth ~US$1.2b, in line with Street expectations. The contract will be effective upon final corporate approvals. The rigs will be customized for the Black Sea ultra-harsh environment. KEP was first announced as winner of the tender in a 21 Nov ’12 announcement. This brings KEP’s ytd orders to $10.2b, and outstanding orderbook to $14.6b. The Street remains bullish on this counter, with 18 Buys, 5 Holds and nil Sells. Consensus TP is $12.69.