Keppel Corp

Keppel Corp: Announced four jackup rigs worth US$820m for Mexican company Grupo R. The jackup rigs will be built to Keppel’s proprietary KFELS B Class design and are scheduled for delivery progressively from 2Q 2015 to 4Q 2015. Recall that KEP also secured contracts to build two similar rigs for PEMEX in Dec last year for US$420m. Contract brings Keppel's YTD orders to $1.59b. Street estimates 2013 orders of $5b-$5.5b. 2012 saw total order wins of $9.9b (of which $5b from Petrobras); 2011 total order wins $10b; 50% of its $15b order book are orders from Brazil PEMEX, the Mexican national oil company has announced investment plans of US$25.3 billion for 2013, of which US$20 billion will be targeted at upstream activities. On a visit to Keppel FELS on 30 January 2013, Mr Emilio Lozoya Austin, CEO of PEMEX, said that the company is embarking on its most ambitious drilling program in decades and plans to add between eight and 12 offshore platforms to its fleet. Grupo R's main clientele are Petroleos Mexicanos (PEMEX) and Federal Electricity Commission, both companies are closely related to the govt.