Keppel Corp

Keppel Corp: has won a contract from Central Panuco, a subsidiary of Mexico’s Perforadora Central, to build a KFELS B Class jackup rig worth US$240m, including owner furnished eqpt. Scheduled for delivery in 4Q15, the jackup rig is intended for operations in offshore Mexico. With the latest contract, a total of 13 KFELS B Class jackup rigs have been ordered for the Mexican market since 2010, reflecting the increasing demand from this region – a theme that market watchers have been highlighting of late. Year-to-date, Keppel has achieved orders of ~$5.3b, and is well on-track to meet the street’s 2013e new order estimates of between $5.5b and $6.5b. OCBC maintains Buy with TP $12.87 OSK-DMG maintains Buy with TP $12.24