Medserv still reeling from Libya unrest, sees operating loss of €503,868

Medserv plc has seen its revenue decline to €6.7 million in 2012 which it has attributed to instability in Libya, being the Group's main market.

Whilst production levels of oil and gas from existing fields in Libya have now reached pre-war levels, the expected recovery in exploration operation took longer than anticipated by the Group.

The company's revenue declined from €9,204,373 generated in 2011 to €6,709,159 in 2012. It also sustained an operating loss, after charging depreciation, of €503,868.

Medserv has now established a new maintenance unit which has been successfully negotiated and completed its first contract with a leading international oil company. Similar contractual work has already been awarded to the group in the first quarter of 2013.

It shall be investing €4 million to install a 2MWp photovoltaic farm making use of the extensive roofs found in its Malta base. "This investment not only generates income for the next 20 years but is also considered as an investment towards sustainable energy production," the company said, adding that this project should be completed and commissioned by the end of 2014.

Medserv has also signed a new lease agreement with Malta Freeport Corporation Ltd that will allow the group to operate from its current location at the Malta Freeport up to 2060.

"This will allow Medserv to plan long term and offer to its customers the certainty that the Malta base will be available to service the major upcoming projects in the Mediterranean.

While Medserv Misurata FZC has resumed operations in Libya, the damaged warehouse still has not been repaired by the local authorities. This severely restricts the nature of the goods the group can store safely. A reduced workforce was retained to oversee the current business, mainly rental.

Wasteserv also announced the commencement of the development of a base in Limassol, Cyprus. The company's personnel are expected to be in Cyprus in the first quarter of 2013 with the task of supervising the civil works and promote Medserv's services.

"The group expects to secure its first business at the end of 2013 or in the beginning of next year in line with progress made in exploration activity offshore Cyprus."

It also said that despite the lifting of the offshore exploration ban by the Italian government, no major developments were registered in Sicily during 2012 due to regional issues which have delayed progress.