Medserv (MDS)

Business description

Medserv is a Malta-based provider of integrated offshore logistics and services in support of drilling operations in the Mediterranean. The acquisition of the METS companies in February 2016 diversified the company into onshore steel.

Investment summary

Medserv is an ambitious, Malta-listed, oilfield support services provider seeking to expand geographically and diversify its markets and product offering. 2016 was a challenging year for Medserv and project delays compounded the cost-saving actions of major customers in a depressed market. The delays are also likely to adversely affect H117, resulting in a sharp reduction in near-term estimates. Cash values hold up well, assuming current market conditions pertain, and our revised DCF value is now €1.83 compared to €2.03 previously.

Last updated on 01/06/2017

Y/E Dec Revenue (€m) EBITDA (€m) PBT (€m) EPS (c) P/E (x) P/CF (x)
2015A 42.7 10.3 6.1 9.7 13.4 5.8
2016A 32.8 5.0 (1.3) (2.1) N/A 11.4
2017E 35.2 7.0 0.5 0.6 216.7 9.7
2018E 42.3 12.4 5.9 9.6 13.5 10.3

Last updated on 24/05/2017

Latest video

Executive Interview – MedServ

Industry outlook

Medserv operates in the upstream oil & gas segment, providing onshore bases in the Mediterranean and Middle East for onshore and offshore exploration and production customers. The acquisition of METS in February adds onshore OCTG services to the historical integrated offshore services offered in Malta and Cyprus. Despite the weaker oil price, activity in its main geographies remains broadly strong as extraction costs are at the lower end of the curve.

Last updated on 01/06/2017

Key management

Anthony S. Diacono, Chairman & CEO
Anthony Duncan, FD
Karl Bartolo, CFO

Company address

Malta Freeport
Port of Marsaxlokk
Birzebbugia
BBG 3011
Malta
+356 2220 2000
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