Keppel Corp

Keppel Corp: BNP noted that Keppel Corp’s jack-up rig market share has held its ground around 33% (2011-13, 24% for 2013 ytd) as company concentrates on its “Near Customer, Near Market” strategy to win orders in overseas regions with strong demand. BNP likes Keppel for its consistent O&M growth due to its dominance in the jack-up rig segment and strict pricing discipline, as well as favourable cost structure Order book is also strong at $15b, which extends to 2019. Potential risks from lower margin projects are offset by a stable flow of core products and non-O&M business activities. BNP maintains Buy with TP: $12.50