Overall market volume is tepid at 975 million worth $953 million, with 272 gainers and 1823 decliners. After the STI made a sharp 1.2% rise yesterday, UOB KayHian says “technicals may appear to be turning positive but we advise investors not to plunge into the market.”
Keppel Corp., the world’s largest oil-rig maker, said profit in the fourth quarter rose 17%, beating analysts’ estimates, as rising oil prices and requirements for newer, safer rigs stoked demand.
Net income climbed to a record $403 million from $343 million a year earlier, the company said today. That surpassed the $371.3 million average of four analyst estimates compiled by Bloomberg. Sales fell 19% to $2.44 billion.
Net income climbed to a record $403 million from $343 million a year earlier, the company said today. That surpassed the $371.3 million average of four analyst estimates compiled by Bloomberg. Sales fell 19% to $2.44 billion.
Net income climbed to $403 million from $343 million a year earlier, the company said in a Singapore stock exchange statement today. That surpassed the $371.3 million average of four analyst estimates compiled by Bloomberg. Sales dropped 19% to $2.44 billion.
Singapore’s Sembcorp Marine (SCMN.SI), the world’s second largest rig builder, said on Thursday it has signed up to $182 million ($233.5 million) jack-up rig contract with a wholly-owned unit of Atwood Oceanics.
The rig is scheduled for delivery by the end of June 2013 and Sembcorp said the contract is not expected to have any material impact on the consolidated net tangible assets per share and earnings per share of the firm for the year ending December 2011.
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Today’s underperformance could in part be down to oil prices tumbling below US$90/bbl ($116.2) Tuesday, settling 2.4% lower at US$89.38/bbl on Nymex; DBS Vickers says these offshore yards “offer the highest correlation to oil prices, spurred by the fleet renewal cycle, and rise in exploration and production spending.”
Keppel AmFELS Inc., the wholly-owned US subsidiary of Keppel Offshore & Marine (Keppel O&M), says it has delivered the third of four EXL jackup rigs to a subsidiary of Rowan Companies, Inc. (Rowan) ahead of schedule and within budget.
Christened Rowan EXL-III, the rig is scheduled to depart Keppel AmFELS’ yard in Brownsville, Texas in January 2011 to commence operations on an ultra deep gas well for McMoRan Exploration Company in the Gulf of Mexico.
Keppel Corp (KPLM.SI), the world’s biggest rig maker, has won an order to build a jackup rig worth US$180 million ($236 million) from Singapore-listed offshore drilling firm Jasper Investments (JASP.SI) with an option for another similar unit.
If exercised, the option of the additional rig will bring the total value of the contract to about US$365 million.
Keppel Corp. (BN4.SG) may extend its gains following the company’s midday announcement of a US$180 million ($236 million) contract to build a jack-up rig for Jasper Investments (FQ7.SG).
The deal comes with an option for an additional rig, which would double the entire contract value to US$365 million.
The initial rig is slated for delivery in 2H12 and brings the total value of new orders secured by Keppel this year to $3 billion.
Keppel FELS Limited (Keppel FELS) says it has secured an order for a KFELS B Class jackup rig worth about US$180 million ($236 million) from Jasper Investments Limited (Jasper), with an option for another similar unit. The rig is slated for delivery in 2H2012. If exercised, the option for the additional rig will bring the total contract value to about US$365 million.
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The STI is flat at 3,148.20 in anaemic volume of 692 million shares worth $894 million, as a lack of global and domestic catalysts, combined with the fact that most participants are winding down for the festive season, means trade remains rangebound and largely directionless.
The STI is +0.2% at 3,153.87 midday after yesterday’s 0.9% loss, with rig-builders, banks and some commodities plays leading gains.
Volume is thin with 517 million shares worth $595 million traded, while market breadth is slightly negative.
Keppel FELS has delivered the KFELS B Class jackup rig, West Juno, to Seadrill Jack-ups on time, within budget and with a perfect safety record.
Developed by Keppel’s Offshore Technology Development unit, OTD, the KFELS B Class design provides maximum uptime with reduced emissions and discharges.
Keppel (BN4.SG) has “a very high chance” of winning 6 rig contracts from Petrobras, while SembMarine (S51.SG) will probably not receive any from Brazilian oil giant, which recently unveiled outcome of 28-rig tender exercise, says Daiwa.
Singapore rig builders rise, outperforming buoyant broad market, regaining most ground lost Tuesday in sharp market selloff as analysts remain bullish on order outlook for 2011.
SembCorp Marine (S51.SG) +1.8% at $5.00, Keppel (BN4.SG) +1.3% at $10.70, SembCorp Industries (U96.SG) +1.5% at $4.91, while STI +0.7%.
Morgan Stanley says “order pipelines for the SG yards have grown again since we last updated them in October,” with SMM, Keppel securing new orders with embedded options for extra future work.
Now expects $9.15 billion 2011 total order intake for Keppel (vs $4.20 billion previously), $11.01 billion for SMM (vs $4.01 billion). Ups SMM’s target to $5.15 vs $4.15, keeps Equalweight rating, ups Keppel’s target to $12.25 vs $11.00, keeps Overweight rating, ups SembCorp Industries’ target to $6.20 from $5.15, keeps Overweight rating.
Prefers laggards Sembcorp Industries, Keppel; says SMM order pipeline very strong, “but multiple is full.”
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“We believe that the cyclical recovery in the jackup market could continue going forward as: 1) returns on jackups of 12.3% for recent contracts remain significantly ahead of long-term average returns of 10.9%. 2) financing costs have come down to 5%-6%, and 3) utilisation rates remain close to 100% for high-spec jackups.”
