Maridive and Oil Services, the biggest oil services company in the Middle East by fleet size, posted second-quarter net profit below forecasts as it suffered from a continued oil industry downturn.

The Egyptian group posted second-quarter net profit of $11 million, down from $29.5 million a year ago and below a forecast for $18.7 million in a Reuters poll.

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

A decline in offshore construction and contract fees cut into profit margins, said Beltone analyst Ahmed Khalil, adding that he expected an 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 $180 million and on procurement for a $380 million Aramco contract at the Manifa offshore oil field in Saudi Arabia following delays.

"The darkest period is now over. The second half of the year should be better as the company said it had resumed the execution of the Aramco contract in June," Khalil said.

He forecast that Maridive's net profit will reach around $70 million in 2010 compared with $80.3 million 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 second-quarter revenue rose 24 percent to $76.3 million from $61.8 million a year ago. Three analysts had forecast revenue would rise to an average of $74.7 million.

Maridive, which serves Total, Royal Dutch Shell, BP, 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.-Reuters