Keppel Corp

Keppel Corp: Barclays reiterates Overweight with TP $13.10, says KEP is still its preferred conversion yard. Industry reports from Upstreamonline (22 Nov 13) have signaled another potential contract – from FPSO operator Bumi Armada.With Bumi Armada having gone to Keppel Shipyard for its previous FPSO conversions, expect the finalization of Bumi Armada’s contract with EnQuest could eventually translate into a FPSO conversion contract for Keppel, which could be a contract win of at least US$100-200m. The house believes this potential contract with Bumi Armada would be further affirmation of Keppel’s proven track record and quality – which still acts as a significant barrier to entry for new entrants.