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Medserv plc financial results exceed targets by 38%

The Board of Directors at Medserv plc has today approved the audited consolidated financial statements for the financial year ended 31 December 2015 which will be submitted for the approval of the Shareholders at the forthcoming Annual General Meeting scheduled for 30th May 2016.

The financial results reported by the Group, show that the company’s performance exceeded targets for 2015. Reported Group revenue for the year was €42.2 million. Profit before tax amounted to €6 million representing an increase of 38% over forecast profit before tax.

The Group's performance in 2015 can be attributed to a number of factors. Firstly to the strong business flow conducted out of Malta in support of the ongoing operations offshore Libya. Secondly to the performance of Medserv (Cyprus) Limited which continues to service ENI out of the company's shore base in Larnaca. Finally, engineering and maintenance services continued to grow in 2015.

“This positive performance is a direct result of past investment made in equipment, professionally qualified personnel, health safety and quality management systems as well as improved information technology.” Anthony Diacono, Chairman Medserv plc. “All of this has allowed Medserv not only to consolidate its position in the oil and gas industry but also to better its financial performance in challenging times.”

As the global oil and gas sector continues to suffer from the effect of oversupply of oil to the market, the Company has refocused and moved ahead with its investment plans to ensure it can continue to be of service to its growing list of blue chip customers in the Mediterranean and beyond.

The main investment for the first quarter of 2016 was the recently reported acquisition of Middle East Tubular Services Limited (METS) for a price of US$45 million. METS is the leading provider of services to the OCTG market and operates bases in Oman, Sharjah UAE and Iraq. This investment allows Medserv to enter the developed market of the Middle East where the extraction cost of a barrel of oil can better with stand today's downward pressure on prices. The METS acquisition also brings to the Medserv Group strong intercompany synergies.

The company will be participating in a new tendering process for a second international oil company in support of its exploration activity offshore Cyprus. Whilst it is still uncertain out of which location this new activity will take place, Medserv (Cyprus) Limited is in a position to operate out of either of the two ports being considered.

In line with Group development strategy, the Company has reported that work has already commenced on evaluating the potential of new markets which include amongst others Portugal, Iran, and Trinidad and Tobago. All of the three prospects mentioned are at different levels of development with Portugal being the most advanced. In respect of Trinidad and Tobago, the Group has been shortlisted by an international oil company to participate in a tender for the provision of supply base and pipeyard services, whilst negotiations are at an early stage in the Group's efforts to secure a base facility in Iran.

“We look forward to 2016 with optimism. Our business pipeline is strong in all the geographical markets in which we operate.” said Mr Anthony Diacono, Chairman at Medserv plc. “Our optimism is based on the knowledge that we have positioned the Group to continue servicing North Africa from Malta, the Eastern Mediterranean from Cyprus, and the Middle East from the UAE, Southern Iraq, and Oman.”
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