On 10 November Medserv plc issued its Interim Directors’ Statement revealing that the growth in turnover and profits recorded in the first half of the year continued for the period ended 30 September 2008. This was mainly due to the commencement of drilling operations supported by both the Malta base and the Misurata base (in which the Company has a 60% interest).
The Company revealed that turnover at the Misurata base during the third quarter to 30 September 2008 exceeded the combined revenue figure of the first and second quarter as drilling operations by a US client started during this period. This should be followed by other major oil companies, with which the Company already has secured contracts. Furthermore, the Company has experienced an increase in the volume of business resulting from the handling and transportation of tubulars on shore Libya which as mentioned in previous announcements is a new income stream.
The Malta base is currently providing support services to a major drilling operation in offshore Libya and has also secured substantial business from a long standing client. Due to this new business, the Directors have put on hold negotiations with a third-party showing interest in acquiring certain fixed assets of the Company. However the Directors explained that this matter will be kept under review and the market will be updated of any developments as necessary.
Despite the recent sharp decline in oil prices, Medserv noted that there is no indication that the current and near future drilling operations will be effected either in Libya or in Malta. In fact, the Directors expect that both bases will contribute positively to the Company’s performance and results during the rest of the year.