O&M

O&M: Petrobras graft scandal implicates Keppel, Sembcorp agents
- Corruption scandal engulfing Petrobras has widened, implicating Singapore rigbuilders Keppel Corp and Sembcorp Marine.
- Documents alleged that US$9.5m ($13m) in bribes and kickbacks were paid by agents of the two Singapore firms.
- Ongoing investigations expected to linger for a while. More pertinently, will clients continue to award new contracts to the two rigbuilders knowing that there is a potentially damaging US lawsuit hanging over their heads?
- MKE has Sell on Keppel Corp (TP: $4.42) and Sembcorp Marine (TP: $1.00).
- House prefers asset owners such as Ezion (Buy, TP: $0.72) and PACC Offshore (Buy, TP: $0.42).