Medserv posts €6 million pre-tax profit on €42 million revenues

Oil logistics firm Medserv has posted pre-tax profits of €6 million, an increase of 38% over forecast profits on revenues of €42.2 million.

Medserv said business growth in 2015 was registered on the strong business flow conducted out of Malta in support of the ongoing operations offshore Libya, and credited the performance of its Cyrpus operation servicing ENI and its engineering and maintenance services.

“This positive performance is a direct result of past investment made in equipment, professionally qualified personnel, health safety and quality management systems as well as improved information technology,” chairman Anthony Diacono said.

“All of this has allowed Medserv not only to consolidate its position in the oil and gas industry but also to better its financial performance in challenging times.”

The global oil and gas sector continues to suffer from the effect of oversupply of oil to the market. Medserv has forged ahead with investment plans to service blue chip customers in the Mediterranean, with its main investment for the first quarter of 2016 being the acquisition of Middle East Tubular Services Limited (METS) for US$45 million.

METS is the leading provider of services to the OCTG market and operates bases in Oman, Sharjah UAE and Iraq.

The acquisition allowed Medserv to enter the developed market of the Middle East where the extraction cost of a barrel of oil withstands the downward pressure on prices.

Medserv will be participating in a new tendering process for a second international oil company in support of its exploration activity offshore Cyprus.

Work has started on evaluating new markets, amongst others Portugal, Iran, and Trinidad and Tobago. “All of the three prospects are at different levels of development with Portugal being the most advanced. In respect of Trinidad and Tobago, the group has been shortlisted by an international oil company to participate in a tender for the provision of supply base and pipeyard services, whilst negotiations are at an early stage in the Group's efforts to secure a base facility in Iran,” Diacono said.

“We look forward to 2016 with optimism. Our business pipeline is strong in all the geographical markets in which we operate. Our optimism is based on the knowledge that we have positioned the Group to continue servicing North Africa from Malta, the Eastern Mediterranean from Cyprus, and the Middle East from the UAE, Southern Iraq, and Oman.”