Medserv has reported a profit before tax of €6 million representing an increase of 38 per cent over forecast. Reported group revenue for the year was €42.2 million.
The group said that its performance in 2015 was attributed to a number of factors, including the strong business flow conducted out of Malta in support of the ongoing operations offshore Libya, and to the performance of Medserv (Cyprus) Ltd which continues to service ENI out of the company’s shore base in Larnaca. Finally, engineering and maintenance services continued to grow in 2015.
As the global oil and gas sector continues to suffer from the effect of oversupply of oil to the market, the company has refocused and moved ahead with its investment plans to ensure it can continue to be of service to its growing list of blue chip customers in the Mediterranean and beyond.
The main investment for the first quarter of 2016 was the recent $45 million acquisition of Middle East Tubular Services Ltd (METS), which allows Medserv to enter the Middle East market where the extraction cost of a barrel of oil can better with stand today’s pressure on prices.
The company said it would be participating in a new tendering process for a second international oil company in support of its exploration activity offshore Cyprus.
“While it is still uncertain out of which location this new activity will take place, Medserv (Cyprus) Ltd is in a position to operate out of either of the two ports being considered,” the company said. Work has also commenced on evaluating the potential of new markets which include among others Portugal, Iran, and Trinidad and Tobago. All three prospects are at different levels of development with Portugal being the most advanced.
In 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, while negotiations are at an early stage in the group’s efforts to secure a base facility in Iran.
The board of directors did not recommend a dividend in view of the “substantial expansion programme”.
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