KEPPEL Corp, the world's biggest maker of offshore oil rigs, said on Thursday third quarter net profit rose 10.2 per cent from the year before, but warned orders may weaken due to a credit crunch.

Net profit of S$272.86 million (US$182 million) compared with S$247.69 million in the same period in 2007, the company said in a statement.

Analysts polled by Dow Jones Newswires had forecast a net profit of S$248 million dollars.

Strong earnings from the marine division, which covers rig building and ship repair, offset a weaker performance from its property business, Keppel said.

Revenue was up 24.1 per cent to S$3.22 billion from S$2.59 billion a year earlier, it said.

'We believe that the fundamentals underpinning rig... demand are still intact although in the forseeable future, some rig owners' ability to expand their fleet could be constrained by tight credit,' said Keppel executive chairman Lim Chee Onn.

But he said a slowdown in rig orders over the next 12-15 months is unlikely to have a significant impact as the company has about S$13 billion worth of orders stretching up until 2012.

'Our order book is robust and well-diversified, comprising national oil companies... and large oil services companies,' he said.

'Given the uncertainties and likelihood of further deterioration in the global economies, we have taken the prudent step to consolidate our resources for the time being,' he said.

'Our focus now is to execute our order book well... We shall keep our powder dry until the current volatile conditions stabilise.'

In its statement, Keppel said the slower world economic growth is hurting its property business.

'Sales of Singapore and regional private residential properties in the first nine months of this year have been subdued,' it said.

The company's property unit, Keppel Land Ltd, reported on Wednesday a 43.5 per cent year on year fall in profit to S$46.2 million for the third quarter.

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

Keppel Corp shares fell 17 cents or 4.1 per cent to S$4 dollars in line with main Straits Times Index. -- AFP