Medserv PLC issues 2012 financial resutls
Despite the market disruption in oil and gas production levels caused by the Libyan war, Medserv plc has announced that its financial results indicate an upturn in the oil and gas market.
The expected recovery in exploration operation has taken longer than anticipated with the company reporting a loss in 2012 due to the significantly lower business levels across Libya.
More than 60% of the total revenue reported was generated in the second half of the year indicating an upturn in business. The Company also reported registering profit in the first quarter of 2013 due to the increased business in the Malta operation.
In a bid to diversify both product and market, a new maintenance unit was established during the year and this successfully negotiated its first contract with a leading International Oil Company (IOC).
The signing of a new lease agreement with Malta Freeport Corporation Limited on December 5 2012 will allow the Group to operate from its current location at Malta Freeport up to 2060. This development allows the Group to plan long term.
The Group also announced a €4 million investment to install a 2MWp photovoltaic farm making use of the extensive roofs found in its Malta base. This investment would not only generate income for the next 20 years but it is also considered as an investment towards sustainable energy production. The project should be completed and commissioned by the end of 2014.
The Group reports that offshore drilling operations by Mediterranean rim countries are expected to commence in the third quarter and fourth quarter of year 2013.
Medserv Misurata FZC has resumed operations in Libya but the damaged warehouse still has not been repaired by the local authorities severely restricting the nature of the goods the company could store safely.
The development of the Medserv base in Limassol, Cyprus has commenced and the Group expects to secure its first business at the end of this year or in the beginning of 2014 in line with progress made in exploration activity offshore Cyprus.
Despite the lifting of the offshore exploration ban by the Italian Government, no major developments were registered in Sicily during 2012. The Group is still maintaining its presence in Sicily.
In line with the Group’s effort to diversify geographically, the Group tendered for business in East Africa. A new subsidiary, Medserv East Africa Limited, has been set up with the specific task to develop these.