Keppel Corp. (BN4.SG) is off 0.6% at $10.80, still consolidating and hasn’t been able to breach the $11 resistance after closing above this level only once since November.

Interest in rig builders lately has shifted back to SembMarine (S51.SG) after its recent selloff, with the market turning more hopeful as several bidders in Petrobras’ 28-rig tender have been disqualified.

 

Non-Petrobras orders meanwhile are still flowing in for Keppel, with the most recent being a US$360 million ($471 million) contract earlier this month to build 2 rigs for Asia Offshore Drilling. 

 

“We believe Keppel’s shares will continue to re-rate as order flow increases. Consensus is still in the process of factoring in the full extent of potential Petrobras orders or the increase in demand for high-end jack ups,” says RBS, which has Buy call and a $13 target. Support is expected at $10.44 (Nov. 24 low). SembMarine +0.2% at $5.13.