Martensitic heat-resistant steel for boiler applications with a unique combination of enhanced creep strength and excellent oxidation resistance upon high temperature exposure in steam containing environments., having the following melt analysis (in wt.-%): C: 0.10 to 0.16%, Si: 0.20 to 0.60%, Mn: 0.30 to 0.80%, P ‰¤0.020%, S ‰¤0.010%, Al ‰¤0.020%, Cr: 10.5 to 12.00%, Mo: 0.10 to 0.60%, V: 0.15 to 0.30%, Ni: 0.10 to 0.40%, B: 0.008 to 0.015%, N:0.002 to 0.020%, Co: 1.50 to 3.00%, W: 1.50 to 2.50%, Nb: 0.02 to 0.07%, Ti: 0.001-0.020%. The balance of the steel consists of iron and unavoidable impurities. The steel is normalized for a period of about 10 to about 120 minutes in the temperature range between 1050 °C and 1170°C and cooled down in air or water to room temperature, and then tempered for at least one hour in the temperature range between 750°C and 820°C. It exhibits martensitic microstructure with average ´-ferrite content of less than 5 vol.-%.