Keppel Corp 01 (May 08 - Dec 14)

[winston]

Not vested.

KEPPEL CORP - Keppel Corp, the world's top offshore oil rig builder, said on Monday it won a contract worth about $200 million to build a rig for PetroVietnam.

[winston]

Not vested. From UOBKH:-

Valuation/Recommendation

Maintain SELL. Our sum-of-the-parts valuation has already priced in annual contract wins of S$3b. We value Keppel’s offshore & marine (O&M) business at a PE of 18x long-term sustainable earnings premised on annual O&M contract wins of S$3b p.a., which translates into an annual O&M net profit of S$250m.

[millionairemind]

Keppel Corporation
Nov 24 close: $8.47
DBS VICKERS SECURITIES, Nov 24

KEPPEL Corp (KEP) has secured a Letter of Award from PetroVietnam Drilling and Well Services Corporation (PV Drilling) for the newbuild construction of a tender drilling rig.

1) The contract is worth US$200 million (S$280 million), when finalised in December 2009. The rig is scheduled for delivery in Q4 2011.This contract will bring KEP's total year-to-date order win to $1.1 billion, achieving parity with its peer, Sembcorp Marine. Our new order assumption for KEP stays at $2 billion in 2009.

2) This deepwater tender rig is based on Keppel O&M's, Deepwater Technology Group (DTG)'s proprietary KFELS SSDT 3600E design. The drilling tender can be deployed in deepwater oil fields of up to 5,000 feet; next to Spars and Tension Leg Platforms.

The eight-point mooring system used by the drilling tender is suitable for offshore Vietnam's harsh environment, as it allows the rig to maintain drilling position amid currents of up to six knots.

3) PV Drilling will operate the tender rig for Bien Dong Petroleum Operating Company in the Nam Con Son Gas Project for 4.5 years with an option for extension. The US$1.3 billion Nam Con Son Gas Project is jointly developed by the Vietnam Oil and Gas Corporation (PetroVietnam) and its partners BP (UK), ONGC Videsh (India) and ConocoPhilips (USA). The offshore oil fields is part of the integrated gas-to-power development to supply natural gas to Vietnam's Phu My power complex via a 370-kilometre subsea pipeline.

The gas development project would contribute to about 40 per cent of Vietnam's power output upon the completion of its Phase 1. We retain our 'fully valued' rating and $7.09 target price on KEP, on expected slump in offshore and marine earnings in 2010.
FULLY VALUED

[millionairemind]

Published November 26, 2009

Keppel secures two contracts worth $165m
It is working on seven other major conversions and upgrading projects

By VINCENT WEE

KEPPEL Corp's offshore arm Keppel Offshore and Marine has secured two contracts worth about $165 million.

The first project: Involves the pre-conversion of P-58, a floating production, storage and offloading (FPSO) vessel bound for the Campos Basin

The first project, secured through Keppel Shipyard from repeat customer Petrobras Netherlands, is for the pre-conversion of P-58, a floating production, storage and offloading (FPSO)vessel bound for the Campos Basin.

The second project involves the repair and modification of the semi-submersible pipelay vessel, Castoro Sei, for Saipem by Keppel Verolme in the Netherlands. The work involves overhauling four thrusters, installing new stinger handling support rails and repairing and modifying the onboard gantry cranes and fendering system as well as an extensive hull blasting and painting programme.

Keppel Shipyard's scope of work on P-58 includes structural and piping renewal, tank coating as well as refurbishment and upgrading of the accommodation.

When completed in the first quarter of 2011, the vessel will sail to Brazil for the rest of the conversion which includes completion works of the topsides.

That segment of the conversion will go through a new tender process in Brazil among the yards based there. The two-stage conversion process is likely a result of Brazil's strict local content regulations, with talk that Petrobras will in future require up to 100 per cent local content. The topsides work typically consists of more than half of an FPSO conversion project.

P-58 will have a production capacity of 180,000 barrels of oil per day (bopd) and gas compression capacity of six million cubic metres per day. It will operate in Parque das Baleias' north field, in Campos Basin and spread moored in a water depth of 1,400 metres.

As for Castoro Sei, work on it is scheduled for completion in the first quarter of next year, after which it will be deployed for the Nord Stream project, a gas pipeline which will link Russia and the European Union via the Baltic Sea.

'As a group, Keppel O&M has built a strong reputation and a trusted brand name for diverse projects with safe and efficient turnaround,' said Keppel Offshore and Marine CEO Tong Chong Heong.

Keppel Shipyard's projects for Petrobras and Brazil currently also include the major conversion of the FPSOs P-57, FPSO BW Pioneer and FPSO Peregrino as well as the modification and upgrading of FPSO Capixaba. At present, Keppel Shipyard is carrying out seven other major conversions and upgrading projects at its yards.

The two contracts are not expected to have a material impact on Keppel's net tangible assets or earnings per share for the current financial year.

[winston]

Not vested. From Kim Eng:-

Keppel Corp – Company Update (Rohan Suppiah 6432-1455)
Previous day closing price: S$8.34
Recommendation: Buy (Raised from Hold)
Target Price: S$10.80

Target price S$10.80; value in its parts
We are substantially raising our target price of Keppel Corp to S$10.80, from S$7.89 previously. This is based on our revised Sum-of-the-Parts valuation. Keppel’s share price has also been a relative laggard versus the broader market over the past month, despite rapidly improving fundamentals.

Rosier outlook for offshore too
We are re-rating the Offshore & Marine business upward and raising forecasts on a recovery in order momentum. Its recent contract order flows have also puts it in good stead to secure more contracts from Petrobras’ massive capex spending program beginning in FY10.

Upside potential for Keppel Bay
For property, selling prices at its Keppel Bay projects have the potential of being raised with the opening of the Sentosa Integrated Resort, slated for 1Q10. We estimate that every $100 rise in ASPs could boost Keppel’s bottom line by S$100m.

SPC sale has set a precedent for potential asset divestments
The sale of its SPC stake in June of this year for a surplus of over S$400m demonstrates a certain willingness on the part of Keppel’s management to create value for shareholders through opportunistic divestments.

With this precedent, entities such as Keppel T&T, K1 Ventures and MobileOne may be the next to go, especially with a recovery in global asset prices.

Value creation opportunities abound
We estimate that a sale of these three units could generate a further surplus of S$439m. Other potential sources of value extraction include asset swaps between Keppel Land and K-REIT, and the hiving off of its infrastructure assets into a business trust.

30% share price upside, potential special dividend from SPC sale
We have raised our FY10 by 15% to S$1,055.1m, and our FY11 forecasts by 24% to S$864.8m, mainly on the back of the recent order flows on its Offshore & Marine division.

We also raise our recommendation to a Buy, with an implied 30% upside to our revised price target. Shareholders also have the opportunity to tap into a potential special dividend of up to 26cts a share from the gains from the SPC sale.

[winston]

Not vested. From OCBC:-

Keppel Corporation: Brighter outlook. Upgrade to BUY.

Summary: Just over a span of three days in end-Nov saw Keppel announcing a total of S$884m of orders from four different customers such as Saipem and Noble Corporation. Order flows are gaining momentum and we think 1Q10 will see additional new orders that will benefit the entire sector with renewed capex rollouts.

We are optimistic of Keppel’s chances of obtaining work from Petrobras, given
1) its impressive rig building track record,
2) the existence of a wholly-owned Keppel FELS Brasil’s yard in Rio de Janeiro and
3) Keppel’s close relationship with Brazil as seen from previous orders.

Our property analyst has also identified several catalysts for Keppel Land in 2010, which leads us to be positive over the group’s outlook for the year ahead. Finally, Keppel has also mentioned that it may unlock the value of some of its infrastructure assets through a listed business trust, given suitable market conditions.

Given all the above reasons, we raise our fair value estimate to S$9.70 and upgrade our call to BUY. (Low Pei Han)

[millionairemind]

December 10, 2009, 12.46 pm (Singapore time)

Keppel wins US$115m offshore marine contracts

SINGAPORE - Keppel Offshore & Marine, a unit of Keppel Corp, said on Thursday it has secured three contracts worth a total $160 million (US$115.3 million). -- REUTERS

[grandmaster89]

December 10, 2009, 12.46 pm (Singapore time)

Keppel wins US$115m offshore marine contracts

SINGAPORE - Keppel Offshore & Marine, a unit of Keppel Corp, said on Thursday it has secured three contracts worth a total $160 million (US$115.3 million). -- REUTERS

But this is less than 2% of its revenues LOL

No wonder no effect on the share price!

[jacktan]

SINGAPORE, Dec 22 (Reuters) - Keppel Corp (KPLM.SI) said on Tuesday it has won $152 million contract from Noble Corporation to upgrade and repair a drillship.

The deal follows Keppel's securing of a contract to upgrade two other drillships from the same company in late November.

[millionairemind]

SINGAPORE, Dec 22 (Reuters) - Keppel Corp (KPLM.SI) said on Tuesday it has won $152 million contract from Noble Corporation to upgrade and repair a drillship.

The deal follows Keppel's securing of a contract to upgrade two other drillships from the same company in late November.

Halo Jack,

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Cheers,
mm