CAIRO: Egyptian group Maridive and Oil Services posted a rise in first-quarter revenues and profits, boosted by contracts in countries like Saudi Arabia and India.
The company attributed the rises to "an increase in the rate of operation in marine units and the executions of large projects like Aramco in Saudi Arabia and ONGC in India."
Maridive said it was continuing work on both contracts, and while it faced some "technical difficulties" and delays in its $180 million Indian contract, it expected to finish the project by the first half of 2012.
The Middle East’s biggest oil services company by fleet size said on Thursday first-quarter net profit after minority interests rose by 18 percent to $14.8 million. The figure did not include results of affiliated companies.
Consolidated revenues soared 69 percent to $109.2 million, the company said.
"Maridive’s revenues surpassed our estimates. We expected $85 million," said Ahmed Khalil, an analyst at Beltone Financial.
"However, its major challenge is to win more contracts, because though its current revenues are good … I see the backlog being almost entirely consumed by end-2011," he said.
He said the firm’s net profit margin was weak at 13.6 percent versus a four-year average of 25.3 percent.
"Are Maridive’s clients being too harsh on contracts pricing? Or has the company oversold itself by accepting lower-margin contracts just to keep the engine running," said Beltone in a research note.
Shares in Maridive rose 1.1 percent, while Egypt’s benchmark share index gained 1.3 percent.
Oilfield services companies were hit hard in the global downturn, with oil and gas producers cutting spending. Some service companies have recently begun to see new orders.
Maridive, which serves BP Plc, Kuwait Oil Company, Royal Dutch Shell Plc, Saudi Aramco, Qatargas, Total, and other oil companies, owns over 60 marine units and has contracted to receive about six vessels and one barge by 2012.
