Keppel Corp

Keppel Corp: According to industry news publication, Upstream, KEP is poised to secure a pair of jackup orders from Mexican national oil company, Pemex. DBSV estimates these orders could be worth around US$400m (i.e. US$200m/unit). The house believes the contract awards could be imminent, as Pemex has already secured funding, having spent the past 90 days arranging newbuild financing. Should these orders be awarded, this would bring Keppel’s FY12 YTD order wins (ex-Petrobras) to S$4.7b, vs the house's assumption of S$5.0b for the full year. Including Petrobras orders, FY12 order wins would be raised to ~ S$11.0b vs its S$11.3b full year assumption. DBSV reiterates its Buy call with TP $12.65.