Analysts: Keppel O&M Can Deliver $4.4B Orders in 2013

Industry watchers are optimistic about Keppel Offshore & Marine's (Keppel O&M) prospects for this year, with several analysts noting that the company could be well on its way to deliver above its order guideline for this financial year.

"Management hopes to clinch $2.4 billion to $4 billion (SGD 3 billion to 5 billion) worth is orders this year, which we think is conservative. In the last financial year, ended Dec. 31 2012, Keppel O&M landed a non-Brazilian order of around $4 billion (SGD 5 billion), which included a letter of intent for two semisubs. We believe that for this year, our target [for Keppel O&M] to realize $4.4 billion (SGD 5.5 billion) worth of orders is achievable, with orders coming from semisubs, FPSO conversions and harsh environmental jackups," CIMB said in a research note released late Thursday.

Maybank Kim Eng's analyst, Yeak Chee Keong, said in an opinion statement in January this year that he expects Keppel O&M to achieve $4.4 billion (SGD 5.5 billion) worth of orders.

Keppel O&M announced it had snagged contracts worth $460 million in two days this week. The contracts comprise of: $161 million floating production storage offloading contracts from Modec and Toyo, and SBM Offshore, as well as $242 million rig-related contracts from Star Drilling, Ensco and Diamond Offshore.


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