Big rise in first half for Egypt's Maridive & Oil

What's Up: An Egyptian oil services company records strong profits as the country's diversified business was mostly shielded from the country's revolution.

An Egyptian marine and oil support services company said its six-month profit rose 37 per cent yesterday, boosted by contracts in countries such as Saudi Arabia and India.

Net income at Maridive & Oil Services rose to US$36.2 million in the six months ended June 30 compared with $26.4m in the same period last year, the company said in a filing to the Egypt Stock Exchange.

Maridive, based in Egypt, offers an array of services to the offshore exploration and production value chain. Its clients include large oil and gas players such as Saudi Aramco, Qatar Gas, Kuwait Oil and Gulf of Suez Petroleum.

Maridive attributed the rises to "an increase in the rate of operation in marine units and the execution of large projects in Saudi Arabia and a $117m contract with India's Oil and Natural Gas Corporation.

The company has been shielded from Egypt's revolution that ousted president Hosni Mubarak and devalued the country's currency.

Maridive earns 97 per cent of its revenues in US dollars and 90 per cent of its operations are located outside Egypt, it said in the filing.

The business has two distinct operational divisions: one providing offshore construction and the other offshore support vessels.

Maridive is geographically diversified with only 15 per cent of its revenue from Egypt and negligible exposure to the Gulf of Mexico.

The company will receive five vessels before the end of this year costing $100m, Emad Fawzi, the company's chief financial officer said in the filing.

The purchase will bring Maridive's fleet to 75 and the total value of signed contracts to $443m.

The company has already secured financing for the purchases, which will lower the fleet age for the company and boost average daily rates.

The company's shares, which are denominated in US dollars on the Egypt Stock Exchange, have risen 10 per cent so far this year. Maridive was little changed at $2.86 a share yesterday.

halsayegh@thenational.ae

Published: August 16, 2011 04:00 AM

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