Built for repeat customer Bumi Armada, the derrick lay barge will have the capability for operations in waters of up to 100m in depth, for deployment in the Caspian Sea. Keppel will build two separate hull strips which will be joined at a shipyard in the Caspian Sea. The parts are expected to be delivered by November 2009.
The second project is from Single Buoy Moorings for the modification of FPSO Capixaba, which was originally a conversion carried out by Keppel in 2006. The new work scope includes the installation of four new modules and the integration plus modification of the existing topsides and turret, before being re-deployed in Brazil in early 2010.
Finally, its Brazil yard, has secured a contract from Noble Drilling for the completion of an ultra-deepwater semi drilling rig. The rig is a dynamically-positioned (DP2) unit designed to operate in water depths up to 10,000 feet, with a drilling depth of up to 35,000 feet. The scope of work to be performed is mainly for mechanical completion. The rig will be chartered to Petrobras after completion in 4Q09.
No significant contribution is expected from these jobs in the current financial year, and the quantum of the contracts is within our scope of order win expectations in FY10. The contracts also do not signify any recovery in the offshore market, as two of the three jobs are refurbishments and fitting, while the third is a very specialized vessel. Our outlook for Keppel therefore remains unchanged, with O&M earnings expected to taper off from 2011 onwards, in lieu of a recovery in the oil rig market. We maintain our Sell recommendation to a SOTP target price of S$3.75.
Sponsored Links
No comments:
Post a Comment