MedservRegis plc - Interim Report
On 19 November, Medserv plc published its Interim Directors’ Statement explaining that the overall outlook remains positive as the volumes of business continued to improve leading to an increase in both turnover and profits.
The recent bond issue has given that Group the necessary financial support to enable it to exploit opportunities in new markets and to finance the planned infrastructure within the Malta base.
The Directors explained that the Malta base continues to support intervention operations offshore Libya in preparation for the significant offshore drilling operations planned to commence in early 2014. Furthermore, Medserv Operations Limited (a fully owned subsidiary) is securing a further 30,000 square metres of land to enlarge the yard facility in Malta in line with the expected increase in business. In the meantime, the Malta base is already providing services in connection with the recently awarded contract for shore base and logistic support to the drilling operation offshore Malta by Phoenicia Energy Company Limited. The drilling is expected to commence in the first quarter of 2014 as opposed to the last quarter of this year as was originally planned.
The Directors also noted that construction works on the solar farm at the Malta base, to be completed by the second quarter of 2014, have commenced with all photovoltaic panels now delivered and infrastructural materials purchased. The project also includes the construction of a 7,500 square metre warehouse which will be used to store oil and gas field equipment.
Internationally, medserv announced that it acquired the 45% interest in Medserv (Cyprus) Limited which was previously held by minority shareholders thereby increasing its shareholding to 100%. Subsequently, it re-sold 20% of this subsidiary to a new partner – Caramondani Bros Public Co Limited which is a member of a major electrical and mechanical engineering group based in Cyprus called Caramondani Group. Medserv (Cyprus) Limited has submitted its first tender for the provision of shore based services to an international oil company. The tender is at the adjudication stage and if successful, Medserv (Cyprus) Limited will carry out its operations from the base in Larnaca where its has leased 30,750 square metres of open area and 3,000 square metres of warehousing.
The announcement also made reference to the Misurata base which remains operational but business continues to be slow. All client contracts remain in place and mainly relate to storage of equipment. The Misurata Authority has sanctioned repair works to the warehouse leased to Medserv Misurata Free Zone Company and has provided the company with an adjacent warehouse whilst the repair work is ongoing.