Medserv reports renewed demand as Libya hostilities wind down

Medserv has announced its Malta base will revert to a five-day week with a full complement of staff after having spent the past three months on a four-day week as a direct consequence of the hostilities in Libya.

“The Company is presently experiencing renewed demand for its services following a more optimistic outlook expressed by its customers. Resumption of full production in the Libyan oilfields both onshore and offshore will take time, but to achieve this will require a very substantial effort by oil companies to restore the facilities to safe working condition,” the company said.

The firm operates support bases for the oil industry in Libya, but its turnover for the six-month period ended 30 June 2011 was nearly halved to €3.9 million compared to €7.2 million in the comparative period last year.

The company's profit margins on some of the its activities were higher than expected since the uncertainty in Libya saw the introduction of strict cost controls and revised accounting estimates of the useful life of plant and equipment.

This led the group to register a net profit for the period to 30 June 2011 amounted to €125,697 when compared to €196,112 for the six months period ended on 30 June 2010.

Both the Malta base and the Libya base in Misurata have been affected by the continuing instability in Libya. On the one hand, the Malta base has benefitted by being seen as a reliable and safe haven for the relocation of oil field equipment and for facilitating the repatriation of staff employed by oil companies.