Keppel Corp

Keppel Corp: Group announced that its O&M arm has secured a contract to construct a KFELS B Class jackup rig from Ensco. The construction cost, together with the commissioning, systems integration testing and project management is expected to be US$225m. When completed in 1Q15, this will be the fourth KFELS B Class Bigfoot unit in Ensco’s fleet. With this latest order, KEP has won about $1.85b of new orders YTD, accounting for 37% of OCBC's full year estimate of $5b. Looking ahead, OCBC expect order flows for such premium jackups to continue. CIMB is convinced that tier-1 drillers still prefer to order their jack-up rigs from the Singapore yards, with continued strong demand from customers. CIMB has an estimate of $5.5b target for Keppel's 2013 orders. OCBC maintain BUY with $12.68 fair value estimate on Keppel Corp; CIMB has an OUTPERFORM, with TP of $13.30;