Keppel Corp. is up 2.0% at $10.81, the best-performing STI component, after it said it may convert up to three liquefied-natural-gas vessels into floating LNG vessels for Golar LNG.
“We view the move positively and the award highlights the strength of Keppel in the conversion space,” OSK-DMG says in a note. “A successful conversion of a FLNGV could potentially lead to more such projects,” it says. “We believe the shipyard value for the FLNGV could be as much as US$500 million ($612 million), depending on the scope of work, especially the procurement portion.”
It keeps a Buy call with $13.80 target. The stock’s 10-day moving average around $10.86 may offer a cap.
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