On 30 August Medserv plc issued its 2010 half-year results. During the first six months of the year turnover amounted to €7.2 million compared to €8.2 million registered in the first half of 2009. This resulted in a profit after tax figure of €147,753 – a significant drop from the €1.5 million recorded in the same period of 2009. The Group explained that these interim results are much lower than those projected and also below those levels achieved during 2009; however turnover remained at the same levels of 2009 mainly due to the increased low margin business registered during the year.
Medserv stated that the Malta base continued to service specialized vessels and rigs passing through the Mediterranean while the Libya base was engaged in the mobilization for exploration activity which is expected to commence in the coming months by an international oil company. The Group explained that both the Malta and Libya bases are assisting a number of mobilization and demobilization operations for various international oil companies. However, during the first six months of 2010, the two bases supported a lower level of activity in their offshore business mainly on the back of two events that affected international oil companies gearing up to commence exploration or production:-
1) All new offshore projects are currently on hold due to the BP incident in the Gulf of Mexico and operators are waiting for the new regulations and consequently the new costs that will be imposed as an aftermath of this incident before being able to resume plans to commence exploration or development. Moreover, there is a temporary ban on deep water drilling in the US (and to a lessor extent in Europe), which is however expected to be lifted before the end of this year. The Group stated that Libya remains its main market however all projects have also been delayed even though no ban was introduced on offshore drilling in the Libyan waters.
2) The Swiss Libyan dispute further aggravated the situation in the Libyan market.
Offshore business in Libya is expected to recommence during the last quarter of 2010 or during the first quarter of next year and the Group is confident that the business which has been postponed will come to the market during this period.
Meanwhile the Group explained that it is continuing to strengthen its management structure to ensure that it has the necessary capability of meeting the expected increased business and is pushing ahead with its plans to further expand and diversify its business. Market assessment for the whole of North Africa and Italy is continuing.
The Directors did not recommend the payment of an interim dividend.
Download a copy of the Medserv 2010 Half-Year Results.