Financial News -Slides for Keppel Land and K-Reit investor meetings April 2010

KEPPEL LAND INVESTOR MEETINGS - APRIL 2010 

K-REIT Asia Investor Meetings - April 2010 

Stock Target Price - OCBC ups TP of Keppel Corp

Updated target price of Keppel Corp by OCBC.
Maintains Buy, TP up from S$9.93 to S$10.20.

Stated that Keppel Corporation's (Keppel) offshore marine arm has announced about S$1.65b worth of orders YTD.

Latest updates at Stock Target Price.

Stock Movement - Keppel Corp closes above 9.31

Keppel Corp closes at 9.31 today, which is also the intra-day high. This has also set a new 52 weeks high for the stock.

Author's Note
The are a few possible reasons for the surge:

• Month/Quarter end window dressing
• Analyst target price for the stock, mostly at the high side of $9 up to $11++.
• Recent winnings of contracts announced over 3 consecutive days, namely:

• 25 MAR 2010: Keppel Offshore & Marine secures $140 million worth of contracts from repeat customers 
• 24 MAR 2010: Keppel Shipyard secures conversion contracts worth $160 million  
• 23 MAR 2010: Keppel Corp bags first major newbuild contract for German offshore wind farm 

• The upcoming attractive divdend ($230 cash and 200 shares of the to-be-listed Keppel Green Trust per lot of Keppel Corp), to be XD in April 27.

Stock Target Price - OCBC ups TP of Keppel Land

Updated target price of Keppel Land by OCBC.
Maintains Buy, TP up from S$3.82 to S$4.16.

Latest updates at Stock Target Price.

Financial News - 25 MAR 2010: Keppel Offshore & Marine secures $140 million worth of contracts from repeat customers

Keppel Offshore & Marine secures $140 million worth of contracts from repeat customers. See report.

Key Points

• Keppel Offshore & Marine Limited (Keppel O&M) through its subsidiaries, Keppel Shipyard, Keppel FELS and Keppel Verolme, has secured $140 million worth of contracts for the conversion of a Floating Production Storage and Offloading facility (FPSO) and repair and modification of two semisubmersibles (semi).
• Keppel Shipyard will undertake the upgrading and conversion of a Suezmax tanker into an FPSO for repeat customer Bumi Armada Berhad (Bumi Armada).
• Keppel FELS and Keppel Verolme have each secured the repair and modification of a drilling semi from Stena Drilling.

Author's Note
This is the third day in a row that Keppel Corp has announced the award of contracts.

Financial News - 24 MAR 2010: Keppel Shipyard secures conversion contracts worth $160 million

Keppel Shipyard secures conversion contracts worth $160 million. See report.

Key Points

• Keppel Shipyard Limited (Keppel Shipyard) has secured two contracts totaling $160 million to convert a Floating Production Storage and Offloading (FPSO) vessel for Single Buoy Moorings Inc (SBM), and a livestock carrier for an affiliated company of Hijazi & Ghosheh Co.
• Work on the FPSO is expected to commence in the second quarter of 2010 and completed in the third quarter of 2011. 
• Additionally, Keppel Shipyard secured a second contract to convert a vehicle carrier, Merlion Ace, into a livestock carrier for Merlion Ace Compania Naviera S.A

Author's Note
This news follows closely after the yesterday's announcement of the S$117.6 million contract for the German offshore wind farm. Hopefully this will provide a further boost to the share price, while unit holders awaits the S$230 cash dividend and 200 units of K-Green Trust (per lot) in April.

Stock Target Price - Update TP of Keppel Land

Updated target price of Keppel Land by KIM ENG.
Maintain Buy, TP S$4.68.

Latest updates at Stock Target Price.

Financial News - 23 MAR 2010: Keppel Corp bags first major newbuild contract for German offshore wind farm

Keppel bags first major newbuild contract for German offshore wind farm. See report.

Key Points

• Keppel Verolme BV (Keppel Verolme) and consortium partner AREVA Energietechnik GmbH, a German subsidiary of French energy company AREVA, have secured a EUR 62 million (S$117.6 million) contract from Wetfeet Offshore Windenergy GmbH (Wetfeet Offshore) to build a Mobile Offshore Application Barge (MOAB) for a new offshore wind farm in the German Exclusive Economic Zone in the North Sea.
• Marks Keppel’s successful entry into the offshore wind energy business.
• The vessel is targeted for completion in the fourth quarter of 2011.

Stock Target Price - Updated TP of Keppel Corp following the Azerbaijan announcement

Updated target price of Keppel Corp by DMG and CIMB following the announcement of the new shipyard in Azerbaijan.

Latest updates at Stock Target Price.

Financial News - 19 MAR 2010: Keppel delivers Floatel Superior 43 days early

Keppel delivers Floatel Superior 43 days early. See report.

Key Points

• Keppel FELS Limited (Keppel FELS) has delivered the semisubmersible accommodation rig, Floatel Superior, 43 days early, safely and within budget to Floatel International (Floatel). The vessel is now ready to commence operations.
• Floatel Superior will depart Singapore shortly for Bayu Undan in the Timor Sea where she will commence her maiden charter contract for ConocoPhillips Australia following 14 days of transit on her own propulsion.
• The construction of Floatel’s second accommodation rig, Floatel Reliance, is progressing well at Keppel FELS. She is on track for delivery in the second half of 2010.
  
  
  

Financial News - 19 MAR 2010: Keppel in joint venture to build and operate new shipyard in Azerbaijan

Keppel in joint venture to build and operate new shipyard in Azerbaijan. See report.

Key Points

• Fortifying its presence in the Caspian Region, Keppel Offshore & Marine Limited (Keppel O&M) joins hands with State Oil Company of Azerbaijan Republic (SOCAR) and Azerbaijan Investment Company (AIC) to develop and manage a new 52-ha shipbuilding and shiprepair facility in Baku, Azerbaijan.
• Shipyard will be developed over a period of two to three years with an investment of US$386 million.
• The joint venture agreement will be signed with Keppel O&M taking a 10% share of the yard, and SOCAR and AIC the other 65% and 25% respectively.
• Keppel O&M will be responsible for the management and operation of the yard.
• Keppel O&M will have the option to acquire another 10% stake in the next three years.
• The new yard is designed to undertake construction of a variety of vessels ranging from offshore support vessels to tankers, as well as ship repair and conversion.
• Spanning a 1,630-metre waterfront, the yard, when completed, will be able to undertake 80 to 100 repairs and conversions per annum and is estimated to achieve an average annual steel throughput of 25,000 tons when operating at full capacity.
• When fully operational, our new yard will create employment opportunities for some 2,000 people.
  
  
  
  
  

Financial News - 22 MAR 2010: Update on Keppel FELS’s Jackup Rig for Saudi Aramco

Update on Keppel FELS’s Jackup Rig for Saudi Aramco. See report.

Key Points

• This is further to the press release “Keppel to build Saudi Aramco’s first
  purpose-built jackup” made on 27 January 2010.
• Keppel FELS Limited has received from Aramco Overseas Company B.V., a subsidiary of Saudi Aramco, the notice to proceed with construction.