Medserv, the oil industry services company, has reported a loss before taxation Lm123,352 (€287,333) (2006: profit of Lm515,288). This represents a negative return of 4.64% (2006: positive return of 18.76%) of the average shareholders’ funds and a negative return of 2.88% (2006: positive return of 12.45%) of the average total assets employed.

The company said that after accounting for deferred tax income, earnings per share for the year amounted to 0c29 (2006: 6c56).

"The decrease in earnings per share is mainly attributable to delays in the commencement of increased activity which is expected to take place in the oil industry offshore Libya. This was, and to an extent, still is due to the release of existing contracts of exploration rigs which are the essential component of exploration and drilling offshore.

"A further factor has been the demand for steel from India and from China which has led to a severe shortage of material with which to build new rigs and other heavy equipment used in the oil industry. However, during the latter half of the year activity increased with the arrival of an exploration rig to which the group provided and is still providing logistical services from Malta.

"The group’s financial stability remains sound and well able to sustain the slowdown in operations which is now coming to an end," Medserv said.