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 OCTG pipe services and supply.

Investment summary

Medserv’s strategy to expand its geographic reach and range of services is bearing fruit. FY17 was affected by lower than expected demand and project delays, but Q118 results show strong progress and the order backlog underpins future revenue performance. A change of management and key shareholders at an early stage to source a strategic purchaser have also been announced. We reduce our FY18 estimates on the lower run rate out of FY17 and introduce FY19 estimates.

Last updated on 14/05/2018

Y/E Dec Revenue (€m) EBITDA (€m) PBT (€m) EPS (c) P/E (x) P/CF (x)
2016A 32.8 5.0 (1.3) (2.1) N/A 96.8
2017A 28.8 3.7 (3.6) (5.6) N/A 32.8
2018E 36.0 6.5 (1.4) (1.4) N/A N/A
2019E 39.3 10.5 2.2 4.7 23.4 7.3

Last updated on 14/05/2018

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 2016 added onshore OCTG services to the historical integrated offshore services offered in Malta and Cyprus. As new territories are brought on stream, the potential for substantial revenue growth for the 2018-2020 period should become more tangible.

Last updated on 27/04/2018

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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