Keppel seals $175m deal with Seadrill

This latest order for a semisubmersible drilling tender brings Keppel's order book t a whopping $9.9billion.

DMG says the outlook for the offshore marine sector remains robust current high crude oil prices are significantly above the investment threshold of major exploration and production companies.

Here's more from DMG:

Adding a new contract to its backlog; re-iterate BUY. Keppel announced that they have secured a US$142m (S$175m) order for a semisubmersible drilling tender from Seadrill. We estimate that total YTD order wins climbed to S$6.8b and outstanding order book is now at S$9.9b. We think Keppel is on track to hit our full-year new order forecast of S$9b.

Repeat unit for a long standing customer. The award-winning KFELS SSDT 3600E drilling tender will be the eighth drilling tender ordered by Seadrill since the design was first delivered in 1994. The latest drilling tender is expected to be delivered in 2Q13. We expect margins to be in the mid teens for this unit.

Key risks to our recommendation are: (1) project execution risks; (2) decline in crude oil prices below the investment threshold of oil majors at around US$75/bbl; (3) deterioration in newbuild financing.

Reaching the people who run Asia's businesses is harder than it used to be.

Inboxes are crowded. Attention is short. The executives you most want to reach — the founders, CFOs, and operators who actually move budgets — are the hardest to find through the usual channels. If you're building a company, a category, or a reputation, you already know this.

We've spent twenty years building the room they read. Singapore Business Review is where senior decision makers in Singapore and across Southeast Asia come for business coverage they can't get elsewhere — in print, online, and in person at the summits and roundtables we host across seven markets.

If you have something these readers should know about — a point of view worth publishing, a product worth their attention, an event worth their time — we'd like to hear what you're trying to do.

Book a meeting

| Or download the media kit (PDF)

240,000 senior readers quarterly in print Top 1,700 Singapore companies reached

7 markets across Southeast Asia