Stock Name: Kep Corp
Company Name: KEPPEL CORPORATION LIMITED
Research House: DMG
Says Alusa-Galvao consortium could drop out of race if they fail to convince Petrobras of their plans, will be positive for other bidders. “Keppel and SMM are in contention to win the seven drillships package given the ranking of their bids, assuming Petrobras awards the full four packages or more.”
Company Name: KEPPEL CORPORATION LIMITED
Research House: DMG
DMG keeps Buy on Keppel Corp (BN4.SG), US$12 ($15.7) target, Neutral on SembMarine (S51.SG), $4.70 target (on sector leading valuation at 17.4X FY11F EPS) after Upstream article says Petrobras disqualifies two highest bidders for seven-drillship package in 28-rig tender; five yards still in hunt for up to four packages of 7 drillships; Keppel, SMM bids were third lowest, fourth lowest respectively.
Says Alusa-Galvao consortium could drop out of race if they fail to convince Petrobras of their plans, will be positive for other bidders. “Keppel and SMM are in contention to win the seven drillships package given the ranking of their bids, assuming Petrobras awards the full four packages or more.”
Makes no changes to EPS forecasts “as we have priced in both yards winning the seven-drillships package and earnings contribution from FY12 onwards.” SMM off 0.8% at $4.980, Keppel down 0.7% at $10.82.
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