MedservRegis plc - Interim Report

On 11 November 2022, MedservRegis plc issued an Interim Report providing information about its financial performance in Q3 2022. Revenues amounted to €20.9 million (Q3 2021: €11.2 million) of which €13.6 million (or 66%) were generated from the provision of Integrated Logistics Support Services (“ILSS”) whilst most of the remaining income (amounting to €7.2 million) emanated from the Oil Country Tubular Goods (“OCTG”) segment.

EBITDA in the period under review amounted to €4 million which translated into an EBITDA margin of 19.1% (Q3 2021: 14.2%). Despite the smaller contribution of the OCTG division in terms of revenue generation, this operating segment was the largest contributor from an EBITDA perspective.

Q1 to Q3 Performance

During the nine-month period ending September 2022, MedservRegis generated revenues of €47 million and an EBITDA of €8.8 million. However, in view of the healthy pipeline of business, the Group is anticipating that for the full year, it will generate total revenues of €54.7 million and an EBITDA of €11.6 million. These forecasts have been revised higher when compared to the original estimates as provided in the Financial Analysis Summary (“FAS”) published in late July 2022. Moreover, the Updated FAS forming part of the Bond Prospectus dated 9 November 2022 shows that in 2023, MedservRegis is expecting revenues to increase by 8.3% to €59.2 million reflecting the start of new operations offshore Libya as well as the activity in Uganda where MedservRegis is supporting the construction of a 1,440 km pipeline from Uganda to Tanzania. The projections for the 2023 financial year also show that the Group is expecting to generate an EBITDA of €14.2 million (21.7%) which would also translate into an improved margin of just under 24% compared to 21.3% in 2022. MedservRegis also added that it has identified significant growth potential both in existing markets as well as in new countries (such as Morocco and Lebanon) and that new contracts are expected to be awarded in the coming months.

In conclusion, MedservRegis explained that despite the prevailing volatility in energy commodity prices, International Energy Companies have recorded considerable profits which could potentially translate into a significant increase in new projects going forward especially in regions where the Group is present – namely the Mediterranean, Africa and the Middle East.