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Drilling muds manufacturer - Medserv Energy
Medserv Reports Strongs Results

  • Drilling muds manufacturer - Medserv Energy
Medserv reports strong results

In the interim financial statement issued earlier today, Medserv Group reported a substantial increase in performance over the comparative period for last year. The Group’s turnover for the first six months of the year amounted to €26,927,943 compared to €9,514,191 registered in the first six months of 2014. In addition, the Company reports that higher margin business this year has resulted in significantly higher overall profit margins. The group registered a profit before tax of €4,501,869 for the period compared to a profit of €564,007 registered in the six month period to 30th June 2014, with a net profit after tax of €3,008,921 compared to a net profit of €446,815 for the six month period to 30th June 2014.

“Our position in Malta has become even stronger, with a number of the leading international oil companies operating out of our Malta base.” said Group Chairman, Mr Anthony Diacono. “The base remains extremely busy and this has necessitated further expansion of our office block in Malta Freeport, over and above the extension we had announced in the interim statement relating to the first six months of last year. Besides the office space, a further 13,000 sqm of land at Hal Far in addition to the 30,000 sqm announced in the same report has also been obtained to cater for the increased demand for space that we are facing.” he added.

Due to the growing shortage of quay space in Malta suitable for ‘quayside operations’ the Group has sought alternative facilities and has been successful in locating a suitable port in Greece. The first vessel has already arrived and Medserv staff have been relocated to manage this new business in a new location for the Group.

The Company reports that Eni Cyprus has completed the drilling of the first two wells of a four well programme and is currently studying the results. As a result, Medserv (Cyprus) Ltd has in the meantime, reduced its operating costs commensurate with the present reduced activity of Eni Cyprus.

As the Misurata base remains dormant, the Group has taken a decision to close the base permanently. An agreement has been concluded with the Company’s equity partners in Libya under which the shares in Medserv Misurata Free Zone Company (of which the Group owns 60%), has been transferred to the Libyan partners in exchange for a financial consideration and for certain assets on the Misurata base which have been shipped over to Malta.

“We do however strongly believe that Libya will remain an important market and we are positioning ourselves to be able to reopen a land base at the first opportunity. The decision on location will obviously depend on the market and the political and economic changes one may expect in the new Libya.” said Mr. Diacono.

The Medserv Tripoli office remains active and has obtained an additional significant maintenance contract valued at one million euro, with the possibility to extend by a further two million in 2016. This project further confirms the solid development of the maintenance unit that the Company set up last year.

The Group reports that it is continuing to actively search for additional opportunities particularly in Portugal, Egypt, and in the Middle East.