Medserv reports positive 2013 interim, with €566,485 gross profit

Oil logistics firm Medserv declared an interim 2013 group turnover of €3,703,489 at end June 2013, compared to €2,545,888 registered in the comparative period, an increase of 45%.

Pre-tax profits returned to a healthy €566,485 compared to a loss of €680,589 sustained in the six-month period to 30 June 2012. After accounting for taxation, the net profit amounted to €504,450 compared to a profit of €9,765 for the six month period ended 30 June 2012.

The group's results for the first half of the year are in line with forecast with turnover substantially higher than that of the comparative six-month period reflecting the continuing resurgence in turnover which commenced in the second half of 2012.

Medserv said its Malta base has been busy with a number of new types of engineering operations in addition to the more normal activities found on the base tied to continued preparation by oil companies for upcoming projects in the Mediterranean particularly offshore Libya.

The recently set-up maintenance unit has now successfully completed its second major maintenance contract in Libya and further work has been obtained for the second half of the current financial year. The specialised procurement team has also obtained substantial business from new customers and this is expected to increase.

The Misurata base is also showing gradual signs of returning to operations. Medserv Misurata tendered for an offshore drilling operation for a French company and a response is awaited. "Whilst perhaps not too much enthusiasm should be placed on this one event it demonstrates that it is possible once again to mount a full-scale drilling operation from Misurata given the return of the international oil companies and the goodwill of the local population," Medserv said.

However the company remain cautious on Libyan developments, while still looking elsewhere in the East such as in Cyprus where it had now been awarded a licence to operate out of the port of Larnaca. This is in addition to the one already granted in Limassol, but it is likely that Larnaca will be preferred as the company will have access to a deepwater quay and warehouses.

"This would enable the Cypriot company to expand in line with requests from an existing Medserv client, something which would not be possible in Limassol due to the shortage of quayside land. Cyprus is also seen as a regional centre which similar to Malta can serve the offshore oilfields of other regional countries," Medserv said.

Medserv has been invited to set up a logistic base in two ports in Lebanon where a proposed partner already owns quays and warehouses. These are situated directly opposite the sea areas to be explored and the company has entered into early discussions on this project.

Medserv Italia has also been waiting for government and regional permission to be granted to oil companies to commence drilling operations offshore Sicily.