Keppel Corp., the world’s largest oil-rig maker, reported a 25% increase in second-quarter operating profit, helped by higher earnings at its offshore and real-estate units.

The profit totaled $444.6 million in the three months ended June compared with $356.8 million a year earlier, the Singapore-based company said in a statement to the stock exchange today. Net income dropped 53% to $347.3 million after year-earlier one-time gains

 

The company’s first-half orders for drillship upgrades and other offshore equipment surged more than fivefold to $1.9 billion as a rebounding global economy revived oil prices. The BP Plc spill in the Gulf of Mexico is also unlikely to affect demand in the longer-term, said Chief Executive Officer Choo Chiau Beng.

 

“Our level of inquiries has remained healthy,” he said at a press conference.

 

Profit at Keppel’s offshore unit advanced 7% to $305 million in the quarter, the company said. Keppel Land, the property unit, said on July 20 second-quarter net income rose 20% to $70.1 million.

 

Keppel gained 1.1% to $8.85 on the Singapore exchange today before the earnings announcement. The stock has climbed 10% this year, compared with a 2% increase in the 30-member Straits Times Index.

 

Excluding one-time gains, Keppel’s second-quarter net income rose 9.4%, while sales dropped 25% to $2.42 billion. Keppel had an exceptional gain of $422.2 million a year earlier after selling a stake in Singapore Petroleum Co.

 

Keppel plans to invest US$50 million ($68.7 million) in acquiring and upgrading a 7.6-hectare shipyard in Brazil. The Singaporean company is also expanding its presence in the Caspian Sea and the Middle East, Choo said.