MedservRegis plc - Interim Report
On 14 May, Medserv plc issued its Interim Directors’ Statement to update the market on its performance since the start of 2014. During this period, the Group has continued to extend its operations and increase its profitability largely due to the services being provided to a mud-mixing and supply operation in Romania.
Going forward, the Directors noted that Medserv Operations Limited will be providing logistic supply base services, transportation, and associated services to the Genel Group in relation to the drilling of an exploration well offshore Malta. Meanwhile, the operations with regard to the two contracts for the provision of logistic support services by Medserv Operations Limited to two separate international oil companies operating offshore North Africa announced earlier this year are due to commence in the second half of 2014. In this respect, substantial amounts of equipment have already arrived and are still being received at the Malta base. This vindicates the Group’s decision to secure a further 30,000 square metres of open space in Hal Far (in close proximity to the Malta base) as oil field equipment is already being stored there despite the fact that preparatory works are still in their final stages. Similarly, the new 8,000 square metre warehouse being built at the Malta base has started to be used to store material requiring covered storage although it is not yet completed.
Construction works on the solar farm at the Malta base are well advanced and the solar farm is due to be commissioned from26 June 2014.
Meanwhile, the maintenance contract referred to in the Chairman’s report for 2013 is still in the final stages of adjudication.
Outside of Malta, preparation on the base in Larnaca (in which the Group has 80% stake) is proceeding on schedule and in time for the commencement of the provision of operational support services to ENI on 1 June 2014.
It is anticipated that in view of the above projects, the financial results for the current financial year will be skewed towards the second half as the majority of new contracts in hand commence in that
Furthermore, present indications are that drilling will be allowed to recommence offshore Sicily and Medserv is closely monitoring developments to ensure that it is well placed to take advantage of this opportunity.
The announcement also noted that during the period under review, Medserv plc successfully issued the second and last tranche of its €20 million bond issue. The second tranche amounted to €7 million and trading on the Malta Stock Exchange commenced on 9 May.