Keppel

Keppel: Trough in O&M could last longer than expected; CLSA high conviction Sell
-No respite from recent recovery in oil prices, as order book depletes
-Ongoing liquidity issues and weak charter rates sugest trough could last longer-than-expected
-Many drillers have weak balance sheet and seen to be preserving capital for dividend payout instead of capex
-Suply of rigs remain ample, with record 128 jack-ups due for delivery
-CLSA maintain high conviction Sell call, with TP of $4.13