Keppel Limited

Petrobras scandal starts to investigate its customers, which includes Keppel and SembMarine.

The official response of Keppel is here
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We refute allegations made in media reports on Keppel FELS’ involvement in the
scandal surrounding Petrobras.
We would like to emphasise that Keppel Group has a Code of Conduct which prohibits,
among others, bribery and corruption. Our employees are required to conduct
themselves with integrity, in an ethical and proper manner, and in compliance with the
applicable laws and regulations of the countries in which we operate, including antibribery
laws.
We wish to point out that Zwi Skornicki is an employee of Eagle do Brasil, which is the
agent of Keppel FELS in Brazil. Keppel FELS had conducted due diligence review of
Eagle do Brasil and Zwi Skornicki. Further, the Agency Agreement with Eagle do Brasil
categorically states that Eagle do Brasil and Zwi Skornicki “shall not make, either directly
or indirectly, any improper payment of money or anything of value to an Official in
connection with the Contract”. In addition, Eagle do Brasil’s services are not exclusive to
Keppel FELS, and it is also an agent to other reputable multi-national companies.
We would also like to clarify that as part of initiatives to contribute to the communities
around the world in which we operate, we make various contributions in Brazil, which
include social welfare programmes, community activities and political donations. All of
our various contributions are made according to and within local laws and regulations,
which are documented in the respective companies’ records and audits.
http://infopub.sgx.com/FileOpen/Keppel%2...eID=334102
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Keppel, SembMarine deny involvement in Petrobras scandal

SINGAPORE (Feb 9): Keppel Corp and Sembcorp Marine have denied allegations that they paid bribes to secure contracts in Brazil.

Brazilian news magazine Veja reported that representatives of both companies paid more than US$6 million ($7.5 million) in bribes to officials of national oil company Petrobras and its unit Sete Brasil.

Key executives of Petrobras abruptly resigned recently amid ongoing police investigations into a corruption scandal.

The oil giant has been struggling ever since investigations revealed that suppliers bribed its executives, and that funds from inflated contracts were funnelled to certain politicians in Brazil.

Citing claims by Pedro Jose Barusco, a former Petrobras engineering manager, the report by Veja named Zwi Skornicki, an employee of Eagle do Brasil, Keppel FELS's agent in Brazil, as the representative involved in the scandal.
...
http://www.theedgemarkets.com/sg/article...as-scandal

World outside SG is not so sterile.

Even a former KEP director was convicted of bribery outside SG
in the past.

Things are getting even more complicated with the allegations against Keppel and Semb Marine.

With the volatile oil price and scandal allegations, any kind buddies would like to enlighten me whether Keppel is a BUY or SELL going forward ?

No smoke without fire !

(09-02-2015, 01:37 PM)cfa Wrote: No smoke without fire !

I read that half their order book came from this project. Correct me if I am wrong.

(10-02-2015, 08:11 AM)keen Wrote:

(09-02-2015, 01:37 PM)cfa Wrote: No smoke without fire !

I read that half their order book came from this project. Correct me if I am wrong.

So look like a mini "crisis" or a large one? Why it is in the news now when oil itself is in a "crisis"? Shall we do a 渾水摸魚? Who dares, win. Yes?

(10-02-2015, 08:11 AM)keen Wrote:

(09-02-2015, 01:37 PM)cfa Wrote: No smoke without fire !

I read that half their order book came from this project. Correct me if I am wrong.

The analyst report will give you the answer.

Keppel Corp cut to "hold", target cut to $8.65 by OCBC

SINGAPORE (Feb 10): OCBC Investment Research has downgraded Keppel Corp ( Financial Dashboard) to "hold" from "buy" and cut its price target to $8.65 from $9.14 to reflect increasing risks the rig builder faces in Brazil.

An article last week in oil and gas paper Upstream said Brazil’s national development bank BNDES has postponed a US$3.2-billion credit line for several Brazilian shipyards following reports that suggested Sete Brasil is involved in a corruption scandal that has embroiled national oil giant Petrobras.

"This is negative news for Keppel Corp as it could see a delay in receiving payments from Sete Brasil, or worse still, order cancellations," OCBC analyst Low Pei Han said in a note today.

Projects for Sete Brasil and Petrobras account for 40% to 50% of Keppel's order book, she noted, and some of them are mostly completed.

"Keppel has not disclosed the amount of cash received from Sete Brasil with regards to these orders so far."

Keppel may have a hard time selling these rigs to someone else if Sete Brasil, in which Petrobras has a stake, decides to cancel the orders, Low said.

"The average contract price for each semi-submersible secured by Keppel from Sete Brasil was US$800m in 2012, higher than average at that time due to the local content requirement.

"The question is how much these rigs will fetch now should they be sold in the open market, if Sete Brasil cancels the orders."

Keppel shares fell 0.9% to $8.60 at 9:56am (0156 GMT).
http://www.theedgemarkets.com/sg/article...t-865-ocbc

This explains why they want KL private ?

so that KL can make up for KOM's negative outlook?

IMO, the worst isn't yet arrive...

Transocean's pushback points to weakness in shallow-water market: Credit Suisse

SINGAPORE (Feb 23): Transocean's decision to delay taking delivery of five jack-up rigs built by Keppel Corp (Financial Dashboard) points to weakness in the shallow-water drilling market and is another sign of deterioration in the outlook for the offshore and marine sector, says Credit Suisse.

The drilling firm now expects to take delivery of the first of the five rigs built by Keppel in 3Q2016 instead of 1Q2016 as previously targeted.

The remaining four units will be delivered at intervals of about six months thereafter. The original delivery schedule entailed four-month intervals.

"We believe that the pushback in delivery reflects the ongoing weakness in oil prices and a cautious view of the shallow water market that is held by drilling contractors," Credit Suisse analysts Gerald Wong and Hwang Shih Haur wrote in a note today.

As it is, day rates for a premium jack-up rig have declined to US$145,000 in January from US$176,000 in April 2014, while rates for a standard jack-up rig have fallen from US$153,000 to US$92,000 over the same period, they noted.
...
http://www.theedgemarkets.com/sg/article...dit-suisse