Medserv reports €680,589 pre-tax first half loss
Medserv, the service provider to the oil and gas industry, has registered a pre-tax loss of €680,589 for the first half of the year to June 30, down from a profit of €141,137 achieved in the first six months last year. The company described the first half of the year as reflecting the disappointing market conditions but announced it has been awarded a very substantial platform maintenance contract for this month.
After accounting for taxation, the net profit to June 30 amounted to €9,765 when compared to a profit of €125,697 for the six month period to June 30 last year. The group’s turnover for the period under review amounted to €2,545,888 compared to €3,914,590 in the first half last year. No interim dividends are being recommended.
While the Malta base benefited from the relocation of oil field equipment from Libya to Malta, the Misurata base is open but has not yet seen any new business from oil companies renewing operations. Existing fee income at the Misurata base is sufficient to support daily expenditure to provide a break-even situation.
A lease at the port of Limassol in Cyprus has now been signed and preparations are underway to enable the group to provide a full service to the oil and gas industry offshore Cyprus. Government restrictions on drilling offshore Sicily have now been lifted and the group is renewing its efforts to obtain business from oil companies likely to conduct operations in the area.
The group is receiving shipments of material in preparation for commencement of these operations at its Malta base. Repairs to subsea structures and maintenance to platforms are also being carried out. The group has been awarded a very substantial contract to commence in September of this year.
It is also upgrading its equipment and has invested more than €1 million in the past six months in the purchase of a heavy duty crane and other ancillary equipment.
The group remains confident that the upcoming activity in the Mediterranean basin will be greatly to its benefit and looks to the future with optimism.
“Libya has concentrated on resumption of production of existing facilities and oil and gas output has reached pre-war levels,” chairman Anthony Diacono said. “However the return of international oil companies to resume exploration is taking longer than expected, due to the security concerns.”