Egypt's Maridive 2011 net profit drops 32 per cent

Reuters, Monday 5 Mar 2012

Egypt's Maridive and Oil Services, the biggest oil services company by fleet size in the Middle East, reported a 32 per cent drop in net profit in 2011, when tough competition pushed industry prices lower, the firm said on Monday

Maridive's unaudited net profit fell to $42.11 million, down from $61.77 million in the same period a year earlier, a report from the company's board said, without providing a reason for the drop.

The board also said it was distributing one bonus share for every seven shares held.

Revenue rose to $391.3 million from $322.3 million.

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 had contracted to get about six vessels and one barge by 2012.

Oilfield services companies were hit hard in the 2008 global financial crisis, with oil and gas producers cutting spending. Some service companies have recently begun to see new orders.

Maridive said in its report on Monday it had one new contract in Brazil for $234 million and another for over $25 million to rent marine units for four years, which the company expects to receive by April 2012.

"In general, the industry has seen severe competition from other firms operating in the field because of the number of new units that came in with lower prices," the report said.

Shares in Maridive were trading at 1.6 per cent lower, while Egypt's benchmark share index dipped 0.4 per cent.

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