KEPPEL Corp, the world's biggest maker of offshore oil drilling rigs, said on Thursday second quarter net profit rose 16 per cent from a year earlier, buoyed by strong results from its marine division.

Net profit for the three months to June came in at $299.3 million, up from $258.4 million in the same quarter last year.

A Dow Jones Newswires poll of five analysts had forecast a net profit of $282 million.

Revenue for the quarter was up 7.7 per cent to $2.64 billion dollars from $2.45 billion dollars, it said in a statement.

For the first six months of the year, net profit rose 10 per cent to $561 million, on revenue of $4.85 billion dollars, up 8.3 per cent.

Keppel said its offshore and marine division will remain the biggest contributor to the group's profit.

'The fundamentals of the offshore and marine industry remain robust with buoyant demand for offshore rigs and production system solutions', Keppel said.

'This is supported by higher exploration and production budgets of oil companies to meet global energy demand and replenish depleting hydrocarbon reserves'.

Rig orders secured for the first half of the year totalled $3.6 billion, bringing the firm's net order book to $13 billion which should keep its yard busy with deliveries into 2012, it said.

For its property business, Keppel said it will 'monitor the market closely' and launch the second phase of its projects in Singapore when market sentiment improves.

'Housing demand in Asia is expected to grow, supported by rising affluence, rapid urbanisation and favourable demographics', Keppel said, adding it 'will continue to selectively launch more projects in the region'.

Keppel Corp is 21 per cent owned by Singapore state-linked investment company Temasek Holdings.

Keppel Corp shares fell two cents to $10.66 before releasing its earnings report after the market closed.