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09-10-2014, 11:05 PM
Feb 17, 2014 : Nomura Analyst Report
"According to Nomura, Keppel has announced securing a US$650mn order from new customer Fecon International Corp. With this new order, Keppel has secured orders worth a combined S$1.07bn in 2014. This new order, like the order from UMW Oil and Gas secured on 6-Feb-2014, has been secured at a 5% premium to similar design orders secured in 2013.
Including this order, Keppel have now secured 4 JU orders in 2014 YTD worth a combined US$868mn (~S$1.07bn).
We highlight that Keppel alreadyhas a 6 JU MoU with Pemex that is in the negotiation stage and has 6 outstanding options with Transocean and Ensco.
With sustained high oil prices, we think there is sufficient demand in pockets for Singapore-based rig builders to meet their new order targets in FY14F.
In addition, in our recent discussions with both Keppel and Sembcorp Marine, they highlighted that they expect Mexico to continue to remain a strong region for newbuild JU demand, especially after the government’s decision to liberalise the energy sector"
Recommend Buy Price target 13.2 based on Sum of Parts.
Price of Keppel Corp on the day 10.49.
October 9, 2014, Nomura report, Price target 9.64, price today : 10.24.
I am not meaning to pick on Nomura, and yes, before anyone says it, all analysts are like this, i agree. However, one does expect some level of consistency, not flop about like this.
I guess if one were a contrarian buyer, this would be a good time to buy Keppel Corp
"According to Nomura, Keppel has announced securing a US$650mn order from new customer Fecon International Corp. With this new order, Keppel has secured orders worth a combined S$1.07bn in 2014. This new order, like the order from UMW Oil and Gas secured on 6-Feb-2014, has been secured at a 5% premium to similar design orders secured in 2013.
Including this order, Keppel have now secured 4 JU orders in 2014 YTD worth a combined US$868mn (~S$1.07bn).
We highlight that Keppel alreadyhas a 6 JU MoU with Pemex that is in the negotiation stage and has 6 outstanding options with Transocean and Ensco.
With sustained high oil prices, we think there is sufficient demand in pockets for Singapore-based rig builders to meet their new order targets in FY14F.
In addition, in our recent discussions with both Keppel and Sembcorp Marine, they highlighted that they expect Mexico to continue to remain a strong region for newbuild JU demand, especially after the government’s decision to liberalise the energy sector"
Recommend Buy Price target 13.2 based on Sum of Parts.
Price of Keppel Corp on the day 10.49.
October 9, 2014, Nomura report, Price target 9.64, price today : 10.24.
I am not meaning to pick on Nomura, and yes, before anyone says it, all analysts are like this, i agree. However, one does expect some level of consistency, not flop about like this.
I guess if one were a contrarian buyer, this would be a good time to buy Keppel Corp
Disclaimer :-
I am not an investment professional.
I encourage you to do your own independent "due diligence" on any idea that I write about, because I could be and probably am wrong.
Nothing written here is an invitation to buy or sell any particular stock.
At most, I am handing out an educated guess as to what the markets may do.
The market will always find a new way to make a fool out of me (and maybe, even you!).
Even the best strategies of the past fail, sometimes spectacularly, when you least expect it.
I am not immune to that, so please understand that any past success of mine will probably be followed by failures
I am not an investment professional.
I encourage you to do your own independent "due diligence" on any idea that I write about, because I could be and probably am wrong.
Nothing written here is an invitation to buy or sell any particular stock.
At most, I am handing out an educated guess as to what the markets may do.
The market will always find a new way to make a fool out of me (and maybe, even you!).
Even the best strategies of the past fail, sometimes spectacularly, when you least expect it.
I am not immune to that, so please understand that any past success of mine will probably be followed by failures