Keppel Corp: Could see some interests after Co. announced its first contract for the year, worth US$360m, to build two premium jack-up rigs for Clearwater, with options for two more units, which if exercised would bring the total contract value to above US$730m.The new contracts are not expected to impact Keppel''s NTA or EPS for the current FY but are likely to add to already-elevated confidence over demand for high spec jack-ups…..
In separately news, grp announced that Noble Corp. have terminated a US$152m contract to upgrade a drill ship, however grp notes that cancellation is unlikely to weigh on Keppel shares as partnership with Noble "remains steadfast" and grp will now be able to take on more jobs in an improving market….
We note that market is tipping for KepCorp to clinch an estimated $4.5b contracts worth this yr (Excluding Petrobas) and new order places Kep’s orderbook to an approximately $5b (including options). At current price, grp trades at a forward PE of 13.79x vs its weighted of 14.2x and all time high of 22.1x. Grp is scheduled to report results tomorrow. Resistance for today tipped at year-to-date high at $11.70.
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