Daily news - 3 Oct

Keppel wins two deals worth $150m
Keppel Shipyard, a wholly owned subsidiary of Keppel Offshore & Marine, has landed contracts totalling $150 million from repeat customers for the upgrading, modification and conversion of two vessels. Single Buoy Moorings Inc (SBM) has engaged Keppel Shipyard for the conversion of a tanker into a floating production, storage and offloading vessel (FPSO), which would make it the tenth FPSO conversion project undertaken by Keppel Shipyard for SBM since 2000. The second contract, from Golar LNG, will involve the conversion of a membrane liquefied natural gas carrier into a floating, storage, re-gasification unit (FSRU). This is Keppel Shipyard's second such project for Golar LNG. 'We are pleased to again be entrusted with new projects from owners who have worked with us before. We will continue to strengthen our partnership, providing safe and high quality services, especially in the current tight market conditions,' said Nelson Yeo, executive director of Keppel Shipyard. Work on the vessels is expected to commence this month but the contracts are not expected to have a material impact on the net tangible assets and earnings per share of Keppel Corp for FY2008. In a research note, Kim Eng Research said yesterday that it is downgrading its recommendation on Keppel Corp to a hold and cutting its price target to $7.65, as the tightening credit market is expected to put the squeeze on the overall offshore and marine sector.

GuocoLand CFO Jerry Lee quits
Guocoland's chief financial officer Jerry Lee has stepped down 'to pursue personal interests'. And Tan Teck Huat, previously from NATSTEEL, has been brought in to replace him. Mr Lee was responsible for GuocoLand's overall financial and management accounting functions. And his departure could have a significant effect on the company, analysts say. 'At a time when the group has yet to refinance $906 million of borrowings in the next 12 months, and its gearing is at an elevated level of 112 per cent, we believe Mr Lee's resignation is not at an ideal time,' JP Morgan analyst Joy Wang said in a note to clients yesterday. Having said that, GuocoLand had $654 million cash on its balance sheet at June 30.

Source: Kim Eng