Keppel says Q1 net profit up 8%, rig orders rebound

Keppel Corp, the world's largest rig-builder, reported on Wednesday a better-than-expected 7.8 per cent rise in its quarterly net profit, helped by its infrastructure business while orders for oil rigs rebounded.
Keppel, in which Singapore state investor Temasek Holdings has around 20 per cent stake, recorded a net profit of S$346.2 million (US$278.3 million) in the quarter ended March, up from a revised S$321.3 million. The net profit was above an average forecast of S$302 million from analysts.

The conglomerate, whose interest span from offshore and marine engineering, to property and infrastructure said it secured S$4.5 billion worth of offshore and marine new orders in the first quarter, more than the total orders secured in 2010.

Keppel and rival Sembcorp Marine, the world's two top rig builders, have seen a recovery in new orders from energy companies who are accelerating oil search due to high oil prices. The rebound comes after new orders slowed in the last two years, hurt by a global recession in 2009.

Keppel's shares have risen by more than 12 per cent since the start of the year, relatively inline with the 10 per cent increase in shares of Sembcorp Marine, but both outperformed the 0.8 per cent fall in the broader Singapore index. -- REUTERS