Medserv’s board of directors has approved the audited consolidated financial statements for the financial year ended December 31.
The company reportsed significantly improved earnings with reported increase of 26% in revenues over the previous year and adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) amounting to €7m, an improvement of 69% over the previous year and surpassing the Group’s published forecast by 7%.
Revenue is also forecast to double in year 2019 with a consequent increase in EBITDA.
“2018 was a very encouraging year for the Medserv Group and sets the expectations of all stakeholders for both the medium and the long term.
"Strategic decisions taken during the past three years are starting to produce the results expected from such actions. The group is now considered a global player in our industry.
"We are servicing more clients in more continents and we seek to continue growing in a sustainable manner. We remain first movers and put a lot of emphasis on improving our product globally,” Anthony S Diacono, Medserv group chairman said.
With spending returning by the international oil companies on the back of stronger oil prices, 2018 saw a recovery gain traction in the global oil and gas upstream sector, with activity overall heading in an upward trajectory.
The investment that the company has put in place in its management systems during the past years was bearing positive results and the company was positioned for further growth as the market becomes more confident.
This outlook was further strengthened as new discoveries increased drilling programmes, existing contracts were extended, and new business was secured. North Africa, Middle East as well as the expanding region of the Eastern Mediterranean and South America had significant oil and gas projects in the pipeline which demanded services within the company’s key competencies.
The Staatsolie Suriname contract award valued at $30.6 million provided the company with a stepping stone to a new emerging region with growing interest and opportunities for both of its operating segments – ILSS and OCTG.
The company was still waiting for state authority approval for the Uganda project to proceed. An award would provide the group with another long-term contract with consistent revenues.
The company was also awaiting the adjudication of an award of additional supply chain management contracts in the Middle East in 2019, the volumes of which were forecast to be equivalent to those currently being managed by the subsidiary in Oman.
“The company remains poised for achieving this growth without the need of significant additional capital expenditure by commercialising its management services, a new revenue stream. In Suriname, it was our management systems and experience which led to the contract award.
"The company’s operational reach in Europe, Middle East, South America and Africa is presenting unprecedented opportunities for both ILSS and OCTG,” group CEO Karl Bartolo said.
The group reported that the initiative commenced by the two main shareholders to seek new strategic investors was ongoing but moving at a cautious pace and discussions with interested parties were progressing.
“This process is still ongoing, and interest remains positive. The introduction of the right strategic partner will be of benefit in accelerating the Company’s growth potential,” Mr Bartolo said.