Maridive Oil Services turned in a net profit of USD 14 mn (-40% year-on-year) in FY2018 on revenues of USD 208 mn (-13%) in a year in which “E&P spending bottomed out and daily charter rates in our industry hit historic lows,” the company said in a regulatory filing (pdf). Revenues contributed by the company’s offshore services business (accounting for 51% of 2018 revenues) grew 5%, with Maridive Chairman Tarek Nadim noting that performance at the division is “less susceptible to industry cyclicality, with vessel utilization typically driven by ongoing rig operations rather than rig deployment.” The construction side of the business faced challenges: “Subdued market activity took a toll on our subsidiary Valentine Maritime’s award book in 2018 and weighed down on the Group’s consolidated performance,” the company said.

Maridive is one of the few global players in its bracket that has remained profitable throughout the industry downturn of the past several years, a period that saw key competitors including Bourbon and Tidewater seeking bankruptcy protection.

Outlook: Management thinks the industry downturn is ending, saying it expects a “steady increase in offshore capex and opex over the coming year.” Egypt and MENA will be leading the pack: The MENA region’s “low extraction and breakeven points position it as a primary beneficiary from the anticipated turnaround.” Maridive says “the expected growth in spending comes at a time when Egypt is positioning itself as a regional energy hub, with increased exploration activities and significant natural gas finds.”

In numbers: Maridive sees total offshore capex rising from USD 77.5 bn in 2018 to USD 99.6 bn in 2021 at the same time as opex spending offshore grows from USD 94.2 bn last year to just under USD 100 bn in 2021. It sees average daily rates industry-wide growing c. 50% in the same period while utilization rates also climb. Improved capex spending is already hitting Maridive’s construction backlog: One of its construction arms has already landed a new contract with a contractor to Aramco in Saudi Arabia, and its other construction subsidiary is set to bring a new fabrication yard into operation this year.