Net Margin has stablised. Right???
How come analysts still chanting margin concerns?
DBS Vickers says management reassured investors that Keppel’s
Petrobras related projects are on schedule and budget. There are also no
labour shortages seen at their Brazil yards.
“We believe the price premium, escalation clauses on inflation and
forex fluctuations, over 10 years of operating experience in Brazil and
excellent risk management distinguishes Keppel from other players that
have run into operational issues in Brazil. Earnings recognition for the
second (out of six) semi-submersible and first (out of two) FPSO
projects for Petrobras will kick in from 1Q14,” say the analysts.
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