Medserv reports a strong third quarter

In the interim statement issued earlier today, following a Group Board Meeting, the company reports that results for the third quarter of the year have exceeded budget as the second half of the year has seen a continued expansion of Medserv’s business across the whole spectrum of operations.

The Company reports that the Malta base continues to be busy. Medserv’s Libyan branch in Tripoli continues to provide essential administration and support services to offshore Libyan activities whilst plant and equipment has been relocated to the Malta base from Misurata for use in their drilling fluids manufacture and storage business, following the closure of the Medserv Misurata base.

The Cyprus base continues to generate revenue from its services to ENI. The recent discovery by ENI of the Zohr mega gas field offshore Egypt and close to Cypriot waters has increased interest in the area generally, which may lead to an expansion of activities at the Cyprus base.

Development of Medserv’s engineering services continues to gain momentum and is strengthened by the recent announcement of the conditional agreement entered into for the acquisition of METS Companies, a Middle East based group of companies.

An extraordinary general meeting has been called to consider the details of the acquisition and to request shareholder approval. This acquisition will provide Medserv with an expanded blue chip client base, entry into a new geographical region, and a business with a focus on delivering essential but non-critical logistics and engineering services in the oil & gas sector in the Middle East.

“The industry environment remains challenging as we reset to a lower level of oil and gas pricing, however we have moved quickly in response to this challenge the results for the third quarter of the year, which surpassed forecasts, are a testament to proactive strategy” said Anthony Diacono, Chairman at Medserv plc.

“The process to acquire the METS Companies is progressing well as are other diversification plans such as the Company’s efforts to obtain a presence in Egypt and Trinidad, though these are at an early stage.”