Keppel Corp., the world’s largest oil-rig maker, said profit in the fourth quarter rose 17%, beating analysts’ estimates, as rising oil prices and requirements for newer, safer rigs stoked demand.

Net income climbed to a record $403 million from $343 million a year earlier, the company said today. That surpassed the $371.3 million average of four analyst estimates compiled by Bloomberg. Sales fell 19% to $2.44 billion.

Keppel expects growth in Asian demand for oil to help spur an increase in spending by explorers and producers, driving demand for offshore building, including deepwater oil-drilling structures. Oil companies will probably boost spending on exploration and production by 11% this year to US$490 billion ($628 billion), according to a Dec. 15 note from Barclays Plc.

“Market confidence is returning in the offshore and marine industry,” Keppel Chief Executive Officer Choo Chiau Beng said. Spending by oil explorers and producers is expected to rise “in pace with the continued growth in demand for oil,” he said.

Keppel rose 0.7% to close at $11.34 in Singapore trading before the earnings announcement. The stock has climbed 42% in the past 12 months, compared with a 13% advance by the 30-member Straits Times Index.