Daily news - 28 Nov

$1.2b orders for Keppel Corp being reviewed
Keppel Corp & Ezra – Some $1.2 billion of orders placed with Keppel Offshore & Marine (O&M) are under review. The contracts, signed a few months ago, involve a semi-submersible for Scorpion Offshore, two jack-up rigs for Seadrill and a multi-functional support vessel for Ezra Holdings' Lewek Shipping. Keppel Corporation said yesterday it has received indications from the customers to review their options and is talking with them for mutually acceptable arrangements. Construction work has not begun on the projects, but Keppel has received downpayments. A spokeswoman would not say how much has been paid. The review came 'in the light of the tight credit market', she said, declining to elaborate. Keppel said that if the contracts are cancelled, this is not expected to have a material impact on its net tangible assets or earnings per share this fiscal year. Keppel O&M has an order book of about $12.5 billion running until 2012. The $1.2 billion orders represent 9.6 per cent of the current order book. In a separate statement, Ezra said yesterday it is reviewing its $69 million order with Keppel. The contract was signed in May, with delivery expected in 2010, Ezra said.

Source: Kim Eng