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

While H117 results reflected a slower than expected performance in each of the key divisions, Medserv looks set to deliver sequential improvement in H2. The key to H217 growth and ongoing momentum into 2018 is already contractually locked in. In the ILSS division, drilling is set to commence in Q417 for Cyprus, supported by Medserv’s two facilities in Limassol and Larnaca. In OCTG, while activity in Iraq was lower than expected in H1, activity levels have already picked up strongly in Q3 as workover demand grows following a resumption of production at the main fields. While Medserv continues to deliver in existing markets, the group is pursuing opportunities in new geographies to expand its global presence and support longer-term growth.

Last updated on 03/10/2017

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 13.0 5.6
2016A 32.8 5.0 (1.3) (2.1) N/A 11.1
2017E 30.3 4.3 (2.3) (5.3) N/A 11.9
2018E 42.3 12.5 5.8 9.5 13.3 13.5

Last updated on 19/09/2017

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 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 03/10/2017

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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