Keppel Corp

Keppel Corp: OSK DMG maintains Buy with TP: $12.24. KEP has secured 2 FPSO conversion contracts which lifts YTD new orders to $4.3b, accounting for 72% of the house’s $7.2b estimate for FY13. This raises the group’s net order book to $14.4bn. The 1st contract is from SBM, a repeat customer which will be used for Stones ultra deepwater development by Shell in the Gulf of Mexico. The 2nd contract involves the conversion of a FPSO for the Petronas-operated Bukit Tua Field, north of Madura Island in Indonesia. It is understood that KEP beat other yards to the job, including Malaysia Marine and Heavy Engineering Holdings.