Keppel Corp

Keppel Corp: has secured 3 new contracts worth a combined value of $420m, bringing the group’s total order wins for 2012 to $9.9b. i) the first contract is from Hydro Marine Services, a subsidiary of McDermott Int’l, for the construction of a high spec deepwater pipelay vessel. Work is scheduled to commence in 1Q13 and expected to complete in approx two and a half yrs. ii) the next contract is from Australia-based Bhagwan Marine to build a catamaran air dive support vessel. When completed in 1Q14, it will be deployed in north west of Western Australia to support the operations of Apache Energy. iii) the third contract is from Ezra’s EMAS Offshore Construction and Production, to modify and upgrade an existing FPSO facility, Lewek Arunothai. When completed in 2Q13, it will be deployed as an Early Production System in the Kamelia field, located in the Msia / Thai Joint Devt Area in the North Malay Basin. KEP trades at 8.7x P/E, 2.3x P/B, offers 4% div yield.