MedservRegis plc - Interim Report
On 19 November, Medserv plc published its Interim Directors’ Statement updating the market on its performance since 30 June.
During the period under review, as anticipated, the Medserv Group experienced a rise in activity at both bases in Malta and Cyprus which are working at high levels of capacity. Meanwhile, minimal activity is being registered in Medserv Misurata given the turmoil in the country. All contracts announced in the first half of the year, namely the contracts secured by the Malta base with two International Oil Companies and the ENI (Cyprus) contract for the exclusive use of the base in Larnaca, Cyprus, have commenced. The rebound in activity is reflected in the Group’s pre-tax profits which should reach €2.2 million in line with the forecasts published in April 2014.
Furthermore, the Group is expecting to continue its strong performance into 2015. Additionally, the Group’s business development team have intensified their efforts to continue identifying new markets and services to ensure that Medserv retains its position as the main provider of a fully integrated service to the offshore oil and gas industry in the Mediterranean region.
As previously announced, the additional 30,000 square metre site in Hal Far is being utilised to support the various activities being done out of Malta. The new office block built to accommodate the various clients using the Malta facility is fully occupied.
In response to client demands, the Company is increasing office space by installing ten new high quality porter cabin offices which can be sited at both the base in the Malta Freeport or the land at Hal Far depending on the client’s requests.
Meanwhile, the Company has not yet been awarded the lucrative offshore maintenance contract (referred to in previous announcements) due to delays caused by the difficult situation in Libya. Nonetheless, the Group remains confident that this contract will be secured by the end of this year or early in 2015.
Medserv Cyprus has moved from ‘stand by ‘ status to fully operational as the rig, Saipem 10000, commenced drilling operations offshore Cyprus. This has increased the volume of work and is contributing strongly to the Group’s results for the year.
Due to the instability in Libya, operations out of the Misurata base are difficult. However, assistance and support to Medserv’s clients still operating in Libya is being done through the Branch Office, Medserv Libya situated in Tripoli. Moreover, Medserv Libya signed a tripartite agreement with a leading International Oil Company and a leading rig operator to support activity offshore Libya. Further agreements have been signed with other leading international service companies, representing supply vessel support, mud mixing, procurement and local representation.