MedservRegis plc - Interim Report

On 28 May 2024, MedservRegis plc published an Interim Report providing an overview of the company’s performance during the first three months of 2024.

Q1 2024 Performance

Revenue increased by 15.4% to €17.2 million compared to €14.9 million in Q1 2023, driven by the further improvement of the Oil Country Tubular Goods (OCTG) segment in the Middle East. In fact, OCTG revenues grew by 34.8% to €8.9 million (Q1 2023: €6.6 million). Meanwhile, revenue from Integrated Logistics Support Services and Photovoltaic Farm remained unchanged at €8.2 million and €0.1 million respectively.

EBITDA in Q1 2024 surged by 70% to €3.9 million compared to €2.3 million in the first three months of 2023, reflecting the growth in income and improvement in margins. In fact, the EBITDA margin climbed to 22.5% compared to 15.5% in Q1 2023.

In terms of financial position as at the end of March 2024 compared to 31 December 2023, total assets remained virtually unchanged at €146 million, which includes a cash balance of €12.7 million (Dec 2023: €15.5 million). Total liabilities increased by 1.6% to €89.6 million, while total equity dropped by 4.2% to €56.4 million.

Medserv explained that the 2024 performance is expected to be in line with 2023, reflecting the resilience of the OCTG segment and new projects initiated in Guyana. Meanwhile, the company continues to face adverse foreign exchange issues, in particular in West Africa and Egypt.


Industry Outlook

The oil and gas sector is expected to benefit from stable oil prices due to limited supply, whilst the global instability is offset by the extra capacity of the shale reservoirs in North America. Additionally, a surge in investment for international and offshore oil production is anticipated to boost demand for equipment and services from related companies. This investment aims to address years of underinvestment and meet growing global energy needs, particularly in recovering economies like China and India.