Medserv plc – Directors’ Interim Statement
Medserv plc announced that as anticipated, the second half of the year has seen a rise in activity in the group, both in Malta and Cyprus.
This contrasts with the situation in Medserv Misurata, where minimal activity is being registered. All contracts announced in the first half of the year have commenced as anticipated and this is reflected in the profits registered in the group. The forecasts published in April 2014 which indicate a profit of € 2.2 million (before tax) are on target as the Group’s results pick up in the second half of the year. 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.
Both bases in Malta and Cyprus are working at high levels of capacity. Due to the instability in Libya operations out of the Misurata base are difficult. However, assistance and support to our clients still operating in Libya is being done through our Branch Office, Medserv Libya, out of Tripoli Libya.
The Group continued securing contracts with multinational oil service companies. Medserv Libya signed a tripartite agreement with a leading International Oil Company (IOC) and a leading rig operator to support activity offshore Libya. Further agreements have been signed with other leading international service companies, representing supply vessel support, mud mixing, procurement and local representation.
Medserv Cyprus has moved from 'stand by ' status to fully operational as the rig, Saipem 10000, commenced drilling operations offshore Cyprus. This has increased the volume of work and is contributing strongly to the Groups results for the year.
As previously announced, the additional 30,000sqm site in Hal Far is being utilised to support the various activities being done out of Malta. 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 ten new high quality porter cabin offices which can be sited at both the base in the Malta Freeport or the land at Hal Far in response to clients’ demands.
The Group is expecting to continue its strong performance into 2015. Additionally, however, the Group's business development team have intensified their efforts to continue identifying 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.
To view the official company announcement, click here.