Despite Libya chaos, Medserv pre-tax €2.2 million profit on target

Medserv plc’s interim statement has demonstrated the strength of Malta’s position and relationships with Libya, and the importance of the logistics firm’s role in supporting business operations out of Libya.

As the difficult situation in Libya persists and operations for Medserv’s Misurata base remain difficult, assistance and support to clients still operating in Libya was being provided through the company’s branch Medserv Libya, out of Tripoli.

Medserv continued to secure contracts with multinational oil service companies, with Medserv Libya signing a tripartite agreement with a leading international oil company and a leading rig operator to support activity offshore Libya. Further agreements have also been signed with other leading International service companies, representing supply vessel support, mud mixing operations, procurement and local representation.

Forecasts published in April 2014 which indicate a pre-tax profit of €2.2 million are on target as the group’s results pick up in the second half of the year.  All contracts announced in the first half of the year have commenced as anticipated.

“The company remains confident that the delayed offshore maintenance contract referred to in previous statements will become active before the end of the year or the first quarter of next year.  The difficult situation in Libya remains the cause for this delay,” Medserv said.

As anticipated, the second half of the year saw a rise in activity both in Malta and Cyprus where both bases are working at high levels of capacity. 

Medserv Cyprus has moved from ‘stand by’ status to fully operational as the Saipem 10000, rig commenced drilling operations offshore Cyprus. This has increased the volume of work and is contributing strongly to the Groups results for the year.

The new office block built to accommodate the various clients using the Malta facility is fully occupied and the company is increasing office space by installing new high quality porter cabin offices at both the base in the Malta Freeport and the land at Hal Far in response to clients’ demands.

Medserv reports that it is expecting to continue its strong performance into 2015.  The Group's business development team have also intensified their efforts to continue to identify new markets and services to ensure that Medserv retains its position as the main provider of a fully integrated service to the offshore oil and gas industry in the Mediterranean region.