Singapore Hot Stocks-Keppel Corp falls on customer restructuring

SINGAPORE, June 4 (Reuters) - The benchmark Straits Times Index fell 0.3 percent as of 0154 GMT on Thursday.

The following stock was on the move:



** KEPPEL CORP FALLS ON CUSTOMER RESTRUCTURING **

Shares of Keppel Corp, the world's biggest maker of offshore oil rigs, fell as much as 4.4 percent on Thursday on news that a customer that had placed orders worth about S$1.7 billion ($1.2 billion) was facing financial difficulties.

The customer, Norwegian firm Skeie Drilling & Production , said in a June 2 announcement on its website that it had missed payments on rigs it had ordered and that it was in breach of an agreement with bondholders.

Skeie said it hopes to get a majority of bondholders to approve a restructuring proposal by Thursday, and Keppel said it will support the proposal.

DMG & Partners analyst Serene Lim said Keppel's earnings could fall by 3 percent this year and 8 percent next year if the restructuring proposal is rejected, and Keppel either stopped work on the rigs or complete the rigs then sell them to another party.

But Lim is keeping her 'buy' rating on Keppel as she believed Keppel's remaining customers were financially strong and the macroeconomic environment has improved. 0154 GMT

(Reporting by Eveline Danubrata; Editing by Kevin Lim)

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