DMG maintains Neutral on Singapore offshore & marine sector; says pricing by local yards in Petrobras tender -- 10% below Keppel (BN4.SG), Sembcorp Marine (S51.SG) for drillship packages -- “reinforced our view that Brazilian yards are aggressive in their bids and there are risks that the Singapore yards could end up disappointed.”

Maintains estimates for Keppel, SembMarine, Sembcorp Industries (U96.SG) pending tender results (may come this week), current models account for each yard winning around US$6 billion ($8 million) orders. Rates Keppel at Buy with $11.00, “looks the best positioned amongst the two Singapore-based yards given its broad exposure in all three bid packages;” adds, has highest exposure in tender, longer operating history in Brazil.