MARKET TALK: Keppel Can Fend Off Competition

0858 GMT 19 October [Dow Jones] STOCK CALL: Keppel (BN4.SG) should be able to defend its leadership in the premium jackup rigs and conversion, DMG & Partners says in a note. “While the demand-supply for drilling rigs remains tight, Keppel faces more aggressive competition for new orders from Chinese and Korean shipyards due to depleting commercial shipbuilding order book. The intense competition could cap price increases for newbuilds, but we believe major rig owners will continue to seek out Singapore yards for high-end jackup rigs and fast track conversion work for production units.” It keeps the stock at Buy with S$13.80 target. The stock is down 1.2% at S$11.25.

-Leslie Shaffer, © Dow Jones & Company