Keppel Corp

Keppel Corp: Daiwa maintains Buy with TP $13.20. Note that A recent Business Times report on Keppel highlighted the potential of a conversion contract for an FLNG vessel from Golar LNG worth USD500m. House believe this will catalyse a strong medium- to longterm earnings growth driver for Keppel, given the need to: 1) monetise small, stranded gas fields, and 2) capture the gas that is currently flared during offshore oil and gas production. House raising new order estimates for 2014 and 2015 by $1b for each year, resulting in new-order wins of $7b for 2014 and $6b for 2015. Apart from the FLNG vessel conversion contract, Transocean and Pemex may order 6-12 rigs between them over the next 6 months.