The offshore oil business has been in the news recently for all the wrong reasons, but the industry outlook bodes well for Maridive and Oil Services.
After 20 months of volatility in oil prices, stability is returning, exploration and production activity is on the rise and rig counts are up.
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.
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.
With stringent regulations introduced as a result of the BP spill, regulatory barriers are deterring new entrants, which favours established players such as Maridive, said Zeinab el Behairy, an analyst with Naeem Brokerage.
The analyst has a "buy" rating on Maridive's shares with a fair value price of US$4.87. It is trading at a discount of about 45 per cent to its peers, Ms el Behairy said. Maridive closed at $2.60 yesterday.
Maridive has a backlog of $559 million, which represents twice the company's revenue last year, Ms Behairy said.
The Aramco contract of $380m for offshore construction set to run to the end of 2013 is by far the largest.
Maridive suffered from low margins in the first half of the year as the Aramco contract was restricted to mostly procurement and engineering activities, which carry low margins. The contract has been moved to the more lucrative construction phase.
The company is also negotiating four new contracts that could lift Maridive's revenues in the second half of the year.
Maridive is also planning to increase its fleet to 74 from 64 by 2012. The company has already secured financing for the purchases, which will lower the fleet age for the company and boost average daily rates, Ms Behairy said.
halsayegh@thenational.ae
COMPANY PROFILE
Name: Lamsa
Founder: Badr Ward
Launched: 2014
Employees: 60
Based: Abu Dhabi
Sector: EdTech
Funding to date: $15 million
Healthy tips to remember
Here, Dr Mohamed El Abiary, paediatric consultant at Al Zahra Hospital Dubai, shares some advice for parents whose children are fasting during the holy month of Ramadan:
Gradual fasting and golden points - For children under the age of 10, follow a step-by-step approach to fasting and don't push them beyond their limits. Start with a few hours fasting a day and increase it to a half fast and full fast when the child is ready. Every individual's ability varies as per the age and personal readiness. You could introduce a points system that awards the child and offers them encouragement when they make progress with the amount of hours they fast
Why fast? - Explain to your child why they are fasting. By shedding light on the importance of abstaining from food and drink, children may feel more encouraged to give it there all during the observance period. It is also a good opportunity to teach children about controlling urges, doing good for others and instilling healthy food habits
Sleep and suhoor - A child needs adequate sleep every night - at least eight hours. Make sure to set a routine early bedtime so he/she has sufficient time to wake up for suhoor, which is an essential meal at the beginning of the day
Good diet - Nutritious food is crucial to ensuring a healthy Ramadan for children. They must refrain from eating too much junk food as well as canned goods and snacks and drinks high in sugar. Foods that are rich in nutrients, vitamins and proteins, like fruits, fresh meats and vegetables, make for a good balanced diet
The specs
Engine: 2-litre or 3-litre 4Motion all-wheel-drive Power: 250Nm (2-litre); 340 (3-litre) Torque: 450Nm Transmission: 8-speed automatic Starting price: From Dh212,000 On sale: Now
The specs
Engine: 1.5-litre turbo
Power: 181hp
Torque: 230Nm
Transmission: 6-speed automatic
Starting price: Dh79,000
On sale: Now
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Essentials
The flights
Emirates, Etihad and Malaysia Airlines all fly direct from the UAE to Kuala Lumpur and on to Penang from about Dh2,300 return, including taxes.
Where to stay
In Kuala Lumpur, Element is a recently opened, futuristic hotel high up in a Norman Foster-designed skyscraper. Rooms cost from Dh400 per night, including taxes. Hotel Stripes, also in KL, is a great value design hotel, with an infinity rooftop pool. Rooms cost from Dh310, including taxes.
In Penang, Ren i Tang is a boutique b&b in what was once an ancient Chinese Medicine Hall in the centre of Little India. Rooms cost from Dh220, including taxes.
23 Love Lane in Penang is a luxury boutique heritage hotel in a converted mansion, with private tropical gardens. Rooms cost from Dh400, including taxes.
In Langkawi, Temple Tree is a unique architectural villa hotel consisting of antique houses from all across Malaysia. Rooms cost from Dh350, including taxes.
The biog
Family: wife, four children, 11 grandchildren, 16 great-grandchildren
Reads: Newspapers, historical, religious books and biographies
Education: High school in Thatta, a city now in Pakistan
Regrets: Not completing college in Karachi when universities were shut down following protests by freedom fighters for the British to quit India
Happiness: Work on creative ideas, you will also need ideals to make people happy