Keppel Corp 01 (May 08 - Dec 14)

[winston]

not vested

Moving upstream
OUTPERFORM - Maintained
Share Price S$10.92
Tgt. S$14.80

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Keppel’s US$115m investment (20% stake) in Southeast Asia upstream oil & gas company, KrisEnergy could be a precursor of a potential IPO.

KrisEnergy was set up by the ex-founders of former SGX-listed, Pearl Energy which was sold to Abu Dhabi-listed Aabar Petroleum in 2006.

We do not expect material EPS contribution from the deal for now. Apart from the IPO potential, we think KEP could also tap into KrisEnergy’s development field to supply offshore equipment.

Maintain Outperform and target price based on RNAV with stronger offshore order momentum and margins as key catalysts.


Source: CIMB

[winston]

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Singapore's Keppel Corp Ltd, the world's largest oil rig builder, on Thursday reported a 35 percent rise in second-quarter net profit, lifted by contributions from its property division.


Source: Reuters

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STOCKS NEWS SINGAPORE-Maybank, DMG up Keppel Corp target

Maybank Kim Eng raised its target price on Singapore's Keppel Corp Ltd to S$12.90 from S$12.50 and maintained its buy rating, after the world's largest rig builder reported better-than-expected earnings for its second quarter.

Maybank raised its 2012 fiscal year net profit estimate by 5 percent to reflect higher property and investment income.

Keppel shares were down 0.6 percent at S$11.17. The stock ended 1.6 percent higher on Thursday ahead of the results.

Keppel reported a 35 percent rise in net profit and the results came ahead of market expectations.

While Keppel's operating margin for offshore and marine stood at 13.2 percent in the quarter, Maybank remained optimistic that full-year margins would come within its expectation of 14-16 percent.

"A tight rig market with rising utilisation rates and an aging rig profile , would continue to support the rig-building business," Maybank said.

DMG & Partners Securities raised its target price on Keppel Corp to S$13.80 from S$13.60, after increasing its earnings per share estimate by 15 percent for 2012 fiscal year and by 1 percent for 2013. It maintained its buy rating.

Source: Reuters

[winston]

not vested

Singapore's Keppel Corp, the world's largest oil rig builder, reported third-quarter net profit of S$346 million ($284.5 million), 15 percent lower than the S$406.1 million it made a year earlier, mainly due to lower-margin projects.

Source: Reuters

[winston]

not vested

Maintain BUY, TP S$12.65.

Our SOTP-based TP for KEP is lowered to S$12.65 (prev S$13.20), largely due to reduced FY13F O&M earnings.

KEP remains a key beneficiary to ride the tightening rig market, coupled with its solid execution track record, its market leadership position in jackups and semisubmersibles and global yard network.

Maintain BUY.


Source: DBS

http://www.remisiers.org/cms_images/res ... 2_buy_.pdf

[winston]

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STOCKS NEWS SINGAPORE-OCBC cuts Keppel target price

OCBC Investment Research cut its target price for rigbuilder Keppel Corp Ltd to S$12.49 from S$13.34 and kept its 'buy' rating, citing lower operating margins in the offshore and marine segment as well as lesser property earnings.

By 0146 GMT, Keppel shares were flat at S$10.50, and have jumped 12.9 percent since the start of the year, compared with a 13.8 percent rise in the Straits Times Index <.FTSTI>.

After securing S$8.8 billion of orders in the first nine months of the year, Keppel's net order book was S$13.1 billion, with deliveries extending to 2019, OCBC said.

"Looking ahead, we are expecting new order wins of about S$5 billion in 2013 from the Caspian Sea, West Africa, Brazil and other regions," the brokerage noted.

It said Keppel has also started to improve the competencies and productivity of its regional yards to meet heavier workload requirements, which will allow more work to be outsourced to them.


Source: Reuters

[winston]

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KEPPEL CORP LTD - The world's largest oil rig builder reported a 22 percent drop in fourth-quarter net profit to S$305 million ($249 million), in line with market estimates.

Keppel also proposed a final cash dividend of S$0.27 per share and the distribution of one Keppel REIT share for every five shares held worth S$0.274 per share.

Source: Reuters

[winston]

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Shares of Keppel fell as much as 2 percent to S$11.03, their lowest since Jan. 16. It is one of the top traded stocks by value in the Singapore market on Friday, with about 4.3 million shares changing hands.

Keppel Corp reported a 56 percent drop in quarterly net profit from a year earlier to S$331 million ($267.8 million), in the absence of one-time gains from sales of its Reflections at Keppel Bay units.

Brokers are bullish on Keppel Corp and maintained their "buy" ratings.

OCBC Investment Research said it expects the scope for productivity and efficiency gains to drive better-than-expected margins for the company. The broker has a fair value estimate of S$12.68 on the stock.

Even though the stock has been under pressure due to competitive concerns, Keppel's strong position as a premium rigbuilder brings confidence, Maybank Kim Eng said, raising its target price to S$12.85 from S$12.80.


Source: Reuters

[winston]

not vested

Keppel Corporation (AD, TP:S$13.20) - World’s first converted FLNG

Keppel has signed a long-awaited Golar FLNG conversion contract.

We estimate that this could be worth US$580m-700m, based on the potential funding to be raised by Golar.

This contract could raise Keppel’s YTD order wins to S$2.5bn-2.7bn and order book to S$15bn (from S$14.4bn).

We keep our S$6bn order target for 2014 and expect positive margin surprises to catalyse its stock.

We make no change to our EPS, target price (RNAV-based) or Add rating.

Source: CIMB

[winston]

not vested

Keppel’s results were in line with PATMI of SGD406m for 2Q14 (+3.3% y-o-y, +19.8% q-o-q) and SGD745m for 1H14, meeting 50.1% of our FY14F estimate, driven by a strong Offshore & Marine division.

A 12-cent dividend was declared.

Management reiterated their optimism on the jackup and FLNG markets, and view the deepwater segment’s weakness as temporary.

We maintain our BUY recommendation with an unchanged SGD12.50 TP.

Source: DMG