Keppel Corp: +5.1% yday, likely fueled by strong earnings and expectations of new order wins. Momentum may continue today, as Hercules Offshore says it will construct 2 ultra high-spec jackups (KFELS “Super A Class” design) at Keppel FELS Spore. The rigs, scheduled for delivery btwn 2Q-3Q 2013, are est to cost US$208m each and come with 2 options est to cost US$213m and US$215m, r’ptively. We note that Keppel has not yet officially announced this contract…
Also Upstream recently reported that Maersk drilling is in the midst of firming up 2 jackup contracts with Keppel.
Keppel ended FY10 with an order book of $4.6b. Ytd orders would amount to ~$1b, with the inclusion of the Hercules contract. Moreover Keppel has 9 options outstanding, worth ~US$1.7b. The good order pipeline may provide further positive momentum in the counter...
Virtually the whole Street rates at Buy with targets ranging btwn , with UOBK and DnBNOR being the only Sell and Hold calls. Median TP is $13.08.
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