Egypt's Maridive and Oil Services misses forecasts

Egypt's Maridive and Oil Services on Sunday missed forecasts with a first quarter net profit down more than one third on sluggish oil industry activity.

The oil services firm, the biggest in the Middle East by fleet size, posted net profit of $15.4m compared with $23.4m in the same period last year.

Five analysts polled by Reuters forecast Maridive would post a first quarter net profit of $20.6m.

Its shares fell 3.3 per cent by 1100 GMT while Egypt's benchmark slid 3.1 per cent.

Oilfield services companies have been hit hard by the global financial crisis, which prompted oil and gas producers to slash spending, although some services companies have recently begun to see new orders.

A decline in offshore construction and daily rates cut into margins in the first quarter of this year, HC Securities analyst Hatem Alaa said, adding that he expected improvement due to a strong backlog of contracts worth around $569 million.

Maridive said in February that it had begun work on contracts in India worth $180m and on procurement for a $380m Aramco contract at the Manifa offshore oil field in Saudi Arabia following delays.

"We expect a pick-up in the coming quarters as execution of the Aramco contract will resume in June," said Alaa.

He forecast Maridive's net profit to rise to $95m in 2010, up from $80.3m in 2009.

Analysts say most oilfield services companies have improved their cash positions after being hit last year by a collapse in drilling.

The firm said revenues rose 22.3 per cent to $64.7m, up from $52.9m a year ago. Five analysts forecast Q1 revenue would rise to an average of $77.9m.

Maridive, which serves Total, Royal Dutch Shell Plc , BP Plc, Saudi Aramco, Qatargas, Kuwait Oil Company and other oil giants, owns over 60 marine units and has contracted to receive about six vessels and one barge by 2012.