Keppel Corp

Keppel Corp: may see interest today, on yet another new order win.
Co announces $381m order to fabricate and integrate FPSO modules in Brazil for 2 customers, Single Buoy Moorings (SBM) and MODEC and Tokyo Offshore Pdtn Systems (MTOPS). Ytd, KEP has achieved S$1.9b worth of orders, making up ~37% of the Street’s 2011E order forecast of ~S$5.1b, underscoring the strengthening of new order momentum for KEP…

Also, mkt may be encouraged by progress from Petrobras on its giant rig tender. With the award of the first 7 drillship order within Phase 2 of the giant rig tender to local Brazil yard EAS at US$662m/ vessel (slight discount to the US$664m bid submitted), Petrobras should begin negotiations with the remaining bidders (for up to another 3 sets of 7 drillships), starting with the 2nd lowest bidder Alusa, and then to 3rd lowest bidder KEP and finally SMM…

Brazilian offshore driller Queiroz Galvao was also reported to be in negotiations with KEP for 2 semi-sub orders (potentially worth ~S$1.7bn) for Phase 3 of Petrobras’ tender, which should be positive for KEP as it alleviates investor concerns that Phase 3 may be aborted.
Goldman maintains at Buy with $13.50 target, sees recent share price pullback on the back of general mkt weakness, as an attractive entry level for the stock.