Keppel Corp up on better-than-expected Q1 net

Stock Name: Kep Corp
Company Name: KEPPEL CORPORATION LIMITED
Research House: DMG

Shares of Singapore’s Keppel Corp (KPLM.SI), the world’s largest rig-builder, rose as much as nearly 1% in early trade on Thursday after it posted a 7.8% rise in quarterly net profit.

At 9:01 a.m., Keppel Corp shares were up 0.94% at $12.84 on a volume of 430,000 shares.

The firm said after the close of trade on Wednesday that it recorded net profit of $346.2 million in the quarter ended March, up from a revised $321.3 million, helped by better margins from its offshore and marine business. It said also that new orders for oil rigs rebounded. 

The net profit was above an average forecast of $302 million from analysts.

“Keppel has won $5 billion new (orders) this year and we believe the company can achieve our order win forecast of $6.5 billion in FY11,” said DMG & Partners Research in a report.

The brokerage maintained its buy rating on Keppel Corp and raised its target price to $14.05 from $13.94 to reflect the latest market prices of the firm’s listed entities.

RBS however said much of Keppel’s good news was already priced in and downgraded the stock to hold from buy. However, it maintained a target price of $13.50.