On 16 November, Medserv plc issued its Interim Directors’ Statement to update the market on its performance. Following the 16 September 2011 announcement, in which the Directors had revealed renewed demand for the Company’s services, the Directors confirmed that this trend has continued and therefore they are expecting Medserv to register a profitable second half of the current financial year.
Although the Malta base remains the main revenue generator, the Misurata base has reopened for business and this month it carried out its first operational activity since February through its own employees who have reported back to work. Moreover, Medserv Misurata is still charging oil companies for the storing of substantial amounts of equipment most of which are being paid. The Directors also confirmed that the Misurata base only sustained minor damage during the Libyan conflict. However, major renewed activity now depends on the return of customers to normal operations. In this respect, the Directors noted that the resumption of the production and export of both oil and gas in Libya has exceeded expectations. Coupled with the improving political climate, Medserv remains cautiously optimistic that it will benefit from the upturn in activity in Libya.
The Directors also reported progress in respect of its Cypriot joint-venture, Medserv (Cyprus) Limited, which has now been incorporated with Medserv as a majority shareholder. The joint-venture is now negotiating with the relevant authorities towards securing quay space, warehousing and open area availability. Furthermore, the Company already has indications that major oil companies, some of whom are existing customers of the Medserv Group, will be interested in participating in the upcoming auction for licences to drill in the Cypriot concession areas.
In Italy, Medserv Italia Srl held preliminary discussions with potential clients who are now awaiting the decision of the government authorities in Sicily with regard to the environmental impact assessment of offshore drilling operations.