Singapore's Keppel Corp. first-quarter profit rises 7.8 per cent as costs drop

Singapore's Keppel Corp., the world's largest builder of offshore oil rigs, says first quarter earnings gained 7.8 per cent as costs fell.

Keppel said Wednesday that net profit rose to 346 million Singapore dollars ($277 million) for the three months ended March 31 from SG$321 million a year earlier.

Revenue was steady at SG$2.4 billion while materials and subcontracting costs dropped 3.9 per cent to SG$1.5 billion.

Chief Executive Choo Chiau Beng said so far this year Keppel's offshore and marine division had secured SG$5 billion of new orders, more than the company signed all last year. Choo said rising global consumption of crude oil should help keep demand for Keppel's rigs high this year.