SINGAPORE (Jan 22): Troubled Keppel Corp could be saddled with more writedowns from its newbuild jack-up rig contracts, beyond those from Sete Brasil, says OCBC Investment Research.

About 12 of 21 such contracts could be at risk of provisions as they have been mostly deferred by requests from customers, it estimates.

“Should oil prices stay low, we believe that the risk of further delays or even cancellations will rise,” OCBC analysts Low Pei Han and Carey Wong write in a note on Friday.

To continue reading,

Sign in to access this Premium article.

Subscription entitlements:

Less than $9 per month
3 Simultaneous logins across all devices
Unlimited access to latest and premium articles
Bonus unlimited access to online articles and virtual newspaper on The Edge Malaysia (single login)

Stay updated with Singapore corporate news stories for FREE

Follow our Telegram | Facebook