Keppel Corp

Keppel Corp:
Discovery Offshore says Keppel FELS has postponed the delivery date of the unit by 8 wks following “a delay in delivery of certain steel material arising from the events in Japan”.
Discovery’s rig, 1 of 2 penned in Jan, is now scheduled for delivery on 7 Jun ‘13 while the other unit is expected in 4Q13. The duo carries a combined price tag of US$416m. Discovery Offshore also holds options to order 2 additional rigs…

Discovery said it is evaluating whether it is justifiable under the terms of the contracts to “invoke the force majeure-provision" and it assured investors "that all required steps are taken by Keppel FELS to mitigate or avoid the estimated delay in the delivery”.
It is not clear if the delivery of any other newbuildings on order at Keppel have been delayed.
Keppel has secured more than 17 jack-up orders since last Nov. Keppel has not yet made an official announcement on this…

Adding to the negative newsflow, Transocean and Statoil, both customers of Keppel Corp, reported weaker than expected earnings overnight. Transocean reported its biggest first-quarter profit decline (-54% yoy to US$310m) in 9 years amid a wordwide surfeit of rigs. While Statoil said 1Q earnings unexpectedly dropped on lower pdtn and weaker refining and marketing.
Classical support at $11 (coincides with 50MA), which if broken could suggest further downward momentum.