Keppel

Keppel: Keppel O&M secured 5 contracts worth $150m in total. The contracts include 3 FPSO and FSO projects from Armada C7 Pte Ltd, a JV between Bumi Armada and Shapoorji Pallonji Group; Apache Energy Ltd; EMAS AMC Pte Ltd (EMAS AMC), and 2 contracts for construct 2 semi-submersible barges for Royal Boskalis Westminster Group Keppel O&M’s has secured ~$7b ytd. Just last week, Keppel announced the construction of its new CAN DO drillship even without a firm order. This drillship (which typically has a price tag of US$800m, recall SembMarine bagged seven drillship orders from Sete Brazil in 2012 for about US$804m each) could potentially fall in Keppel’s 2014 orderbook. Other potential new orders could also come from the five jackup rig options from Transocean (US$220m each), one option from Ensco (US$265m) and a floating liquefied natural gas vessel conversion project from Golar (US$600-650m) With 20 buys and 7 holds, and a mean TP of $12.62, Keppel Corp is generally loved by the Street.