MedservRegis plc - Interim Report

On 05 June 2023, MedservRegis plc published an Interim Report providing an overview of the company’s performance during the first three months of 2023.

Q1 2023 Performance

MedservRegis’s Q1 revenues surged by over 21% to €14.9 million compared to €12.3 million in Q1 2022. The boost was mostly derived from the improvement of the OCTG segment in the Middle East and the Sub-Saharan business units. In fact, OCTG revenues grew by 50% to €6.6 million (Q1 2022: €4.4 million) whilst revenue recorded by ILSS increased by 5.1% to €8.2 million (Q1 2022: €7.8 million)

In view of the notable increase in business, EBITDA in Q1 2023 increased by 15% to €2.3 million compared to €2 million in the first three months of 2022. However, the EBITDA margin declined to 15.5% from 16.3% in Q1 2022 owing to slow activity in the ILSS segment in Cyprus and Egypt.

Trading Update

Medserv believes that 2023 revenue targets will be reached owing to the ongoing growth of the OCTG division as well as new projects in Morocco and Oman. In addition, the company forecasts increased activity in Malta from sanctioning fresh projects in the Libyan offshore blocs, which will continue for several years. On the other hand, Medserv stated that revenues in Q1 were negatively impacted due to a slow start in some operating jurisdictions as well as the unfavourable EUR/USD and EUR/EGP exchange rates.

Industry Outlook

The global energy industry has reached record levels of cash flow in 2022 following rising oil prices, geopolitical events as well as a recovery in aggregate demand.

Moreover, there is an estimated 12% year-on-year increase in the capital expenditure of International Energy Companies, with the global upstream capex expected to total USD485 billion.