Medserv reported significantly improved earnings in its Annual Report, with reported increase of 26 per cent in revenues over the previous year and adjusted earnings before interest, tax, depreciation and amortisation (Ebdita) amounting to €7 million, an improvement of 69 per cent over the previous year and surpassing the group’s published forecast by seven per cent.
Revenue is also forecast to double in 2019 with a consequent increase in Ebdita.
“Last year was a very encouraging one for the Medserv Group and sets the expectations of all stakeholders for both the medium and the long term,” said Anthony S. Diacono, Medserv Group chairman.
“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.”
The investment that the company has put in place in its management systems during the past years is bearing positive results and the company is positioned for further growth as the market becomes more confident. This outlook is further strengthened as new discoveries increase drilling programmes, existing contracts are extended, and new business is secured.
North Africa, Middle East as well as the expanding region of the Eastern Mediterranean and South America have significant oil and gas projects in the pipeline which demand services within the company’s key competencies.
The Staatsolie Suriname contract award, valued at $30.6 million (€26.9 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 is still waiting for State authority approval for the Uganda project to proceed, which would provide the group with another long-term contract with consistent revenues.
The company is also awaiting the adjudication of an award of additional Supply Chain Management contracts in the Middle East in 2019, the volumes of which are forecasted to be equivalent to those currently being managed by the subsidiary in Oman.
“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,” said Karl Bartolo, Medserv Group CEO.
The initiative commenced by the two main shareholders to seek new strategic investors is ongoing but moving at a cautious pace and discussions with interested parties are progressing. “The introduction of the right strategic partner will be of benefit in accelerating the company’s growth potential,” Mr Bartolo said.