Keppel corp

Keppel: Secured contracts from repeat customers worth a total of $153m. The first is for the conversion of a Floating Production Storage and Offloading vessel for Bumi Armada (delivery 2Q16) while the other is to construct a submersible barge for Smit Shipping Singapore, a wholly owned subsidiary of Royal Boskalis Westminster Group (delivery 2H15). This comes after Keppel announced its fifth KFELS B Class rig order from Gulf Drilling Int’l last month. This would bring YTD order wins to ~$4.6, or 84% of Maybank-KE’s full year forecast. Order book is currently expected to be sustained above $14b, with visibility until 2019. Keppel is currently trading at 1.9x P/B, relative to peer Sembcorp Marine at 2.7x P/B. The street has 18 Buys, 9 Holds and 1 Sell with a mean TP of $12.31