Keppel Corp

Keppel Corp: 3Q13 results came in slightly above expectations, with revenue at $2.9b (-8% y/y, -4% q/q) with corresponding net profit of $457.6m (+32% y/y, +32% q/q). Excluding revaluation, impairments and divestments, core net profit for 3Q13 and 9M13 would be $403m and $1.1b respectively. O&M segment was the key contributor but Property segment also contributed strongly due to profit booking for China projects. 3Q13 operating margin for O&M turned up sequentially to 16.5%, confirming our view of a margin uptrend. The magnitude of the turn however was higher than expected and this was attributed to (1) several jackups at completion stage and (2) efficiency gains from repeat execution. YTD order wins have reached about $5b with outstanding orderbook at a record of $13.6b. Overall, Maybank-KE maintains Buy with $12.33 TP. Continues to see strong demand for offshore orders that would support positive view on the rigbuilders. Last broker ratings as follows: Maybank-KE maintains Buy with $12.33 TP CIMB maintains O/p with $13.30 TP Deutsche maintains Buy with $13.00 TP OCBC maintains Buy with $12.87 TP