On 21 March 2011, Medserv plc published its 2010 financial results revealing a 33.2% drop in revenue to €11.7 million as a result of the postponement of offshore work caused by political and economic factors as well as the Gulf of Mexico incident. The decline in turnover had a direct effect on the Group’s profitability. Medserv reported a net profit for the year of only €118,850 as opposed to the €2.8 million generated in 2009. The earnings per share declined to €0.012 in 2010 from €0.233 in the previous year.
Total assets dropped by 20.8% to €13.4 million mainly due to the reduction in net receivables to €4.1 million (2009: €7.4 million). Similarly, shareholders’ funds shrunk from €8.9 million in 2009 to €7.7 million in 2010 which translates into a net asset value per share of €0.77.
Given the significantly lower level of profitability during 2010, the Board of Directors did not recommend the payment of a dividend to shareholders. The Annual General Meeting of the Company will be held on 21 April 2011.
In the Preliminary Statement, the Directors explained that the Group suspended its operations in the Misurata Free Zone in Libya due to the political unrest prevailing in the country. The Directors stated that to date they are not aware of any losses to the assets situated in the Misurata base. Moreover, no provision has been taken in the 2010 financial statements since the Directors cannot confidently make an estimate of the financial effects arising from the present events in Libya which are still unfolding on the future performance and financial position of Medserv Misurata.
On the other hand, the Malta base is experiencing increased business as equipment and materials are being relocated, at least temporarily, to Malta. Moreover, the base at the Malta Freeport is also providing significant volumes of logistical and support services to off-shore platforms located in North Africa within the parameters of the present UN and EU sanctions.
In conclusion, the Directors stated that given the importance for both Libya and international oil companies to continue with all oil and gas projects, Medserv is cautiously optimistic that it is well placed to secure the expected business as this materialises. Furthermore, Medserv is still pursuing new business opportunities and seeking to diversify its revenue streams by entering new geographical markets.
Download a copy of the 2010 Mederv plc Preliminary Statement of Group Annual Results