Keppel Corp

Keppel Corp: Secured a repeat order from Transocean to build 5 KFELS Super B Class jackup rigs for US$1.1b. The rigs are scheduled for delivery progressively from 1Q16-3Q17. In addition, Transocean has options to build up to another 5 similar jackup rigs with KEP. This Transocean order does not come as a surprise, as the tender was reported by Upstream earlier this wk, with KEP tipped to be in the running to clinch the orders, given its track record with Transocean. Nevertheless, it is an affirmation of KEP’s leading position as a rig builder. Including this latest order, KEP has secured 20 newbuild projects worth about $6.4b ytd. This comes close to exceeding the street’s full year estimate of $5.5-6.5b worth of orders. OCBC maintains Buy with TP $12.87.