Keppel Corp. (BN4.SG) rises further, and is up 4.2% at $12.42 vs up 3.0% at $12.28 by the midday break, after it bolsters the now-consensus bullish view over offshore & marine orders with news of another contract.

Keppel says it has secured a contract worth about US$416 million ($532 million) from Discovery Offshore to construct two harsh environment jackup rigs based on its proprietary KFELS Super A Class design. 

The rigs are scheduled for delivery in 1H, 2H 2013 respectively. The company also says Discovery has options to order two additional jackups, which if exercised would bring the total contract value to above US$840 million. 

 

Credit Suisse, in a recent note, says demand for high spec jackups should remain strong on the back of: (1) a shift towards more complex wells, (2) high returns of 12% versus financing costs of 5.0%-6.0% and (3) utilisation rates of 95%. 

 

The house has an Outperform rating and a $14.00 target. Resistance is likely at the June 2008 high of $12.50.