Singapore’s Keppel Corp (KPLM.SI), the world’s largest oil rig builders, reported a better-than-expected 9.3% rise in second-quarter net profit as margins from its offshore and marine business remained high.
Keppel, around 20% owned by Singapore state investor Temasek Holdings (TEM.UL), recorded a net profit of $385 million in the quarter ended June 30, from $352 million a year earlier. The profit was ahead of average analysts forecasts of $334 million.
Higher profit from the offshore & marine business were partially offset by the property unit as Keppel Land (KLAN.SI) saw a 65% decline in second quarter earnings, also weighed Keppel Corp’s bottom line.
The conglomerate, whose interest span from offshore and marine engineering to property and infrastructure said it secured $7.4 billion worth of offshore and marine new orders year-to-date which it said was a record high.
Keppel and rival Sembcorp Marine (SCMN.SI), the world’s top two rig builders, have enjoyed a strong rebound in rig-building orders from energy firms which are accelerating their exploration spending due to high oil prices.
The rebound came after the massive slowdown in the past two years as a result of the global economic recession in 2009.
Keppel shares have risen by more than 5% since the start of the year, outperforming Sembcorp Marine which lost 0.4% and the broader Singapore market <.FTSTI> which declined by 1.6% over the same period.
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