Daily Review 28.05.2024

Medserv reports improved EBITDA during Q1


The MSE Equity Price Index reversed yesterday’s gains dropping by 0.16% to 3,692.904 points as the declines in BOV, GO and Farsons outweighed the gains in Hili Properties and MaltaPost. Meanwhile, three other equities closed unchanged as the total trading activity in local equities was muted at €0.08 million. Download today’s Equity Market Summary.

Today, MedservRegis plc published an Interim Report providing an overview of the company’s performance during the first three months of 2024. 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 this respect, OCTG revenues grew by 34.8% to €8.9 million (Q1 2023: €6.6 million). 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. 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 West Africa and Egypt.

Bank of Valletta plc shed 0.7% to a one-week low of €1.39 across seven trades totalling 31,242 shares.

GO plc also declined by 0.7% to a four-week low of €2.96 over two trades amounting to just 1,000 shares.

Simonds Farsons Cisk plc moved 0.7% lower to the €6.70 level on two deals of 1,034 shares. On Wednesday 29 May, Farsons is expected to publish the results for the financial year ended 31 January 2024.

Meanwhile, Hili Properties plc surged by 2.9% to the €0.216 level albeit over trivial volumes.

MaltaPost plc climbed by 0.9% to the €0.46 level after recovering from an intra-day low of €0.41 (-10.1%) across three deals totalling 5,200 shares. Today, MaltaPost published its interim results for the six-month period ending 31 March 2024. Revenue grew by 2.4% to €20.9 million. Furthermore, Operating expenses fell by 5% to €18.6 million. Consequently, operating profit almost tripled to about €2.4 million. After accounting for interest received, minority shareholdings, income from associates and taxes MaltaPost generated profit attributable to shareholders of €1.6 million resulting in an annualised return on average equity of 11.1%.

Meanwhile, HSBC Bank Malta plc traded flat at the €1.40 level over four trades totalling 10,000 shares.

Also in the banking sector, APS Bank plc held the €0.52 level as 1,133 shares changed hands.

Malta International Airport plc closed unchanged at the €5.70 level across four deals totalling 2,135 shares.

The RF MGS Index rose by 0.28% to 890.082 points. Data released today showed that wholesale prices in Germany dropped by 1.8% during April, falling for the eleventh consecutive month, albeit seeing the softest decline since last August. Elsewhere, in the United States, Minneapolis Federal Reserve President Neel Kashkari stated that several more months of positive inflation data are needed to confidently reduce the federal funds rate. Furthermore, Mr Kashkari added that rate hikes cannot be ruled out if inflation remains at current levels. Meanwhile, crude oil prices rebounded by about 3% from last week’s three-month low, on the back of expectations that the OPEC+ will extend current output cuts into the second half of the year.


This report contains public information only and is not to be construed as investment advice or an offer to buy or sell any securities. Information contained herein is based on data obtained from sources considered to be reliable, but no representations or guarantees are made with regard to the accuracy of the data. Stock markets are volatile and subject to fluctuations which cannot be reasonably foreseen. Past performance is not necessarily indicative of future results. Rizzo, Farrugia & Co. (Stockbrokers) Limited is a company licensed to undertake investment services in Malta by the MFSA under the Investment Services Act, Cap—370 of the Laws of Malta and a member of the Malta Stock Exchange.