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 trading update has highlighted project delays that will see H217 miss expectations. A lower Q4 drilling contribution from Cyprus and activity in Iraq falling off Q3 levels prompted us to reduce our FY17 forecasts. However, contracted projects underpin our FY18 estimates. In ILSS, drilling is set to start in December for Cyprus, supported from its new Limassol base. In OCTG, workover demand should grow following a resumption of production at the main fields. Medserv continues to deliver in existing markets, while pursuing opportunities in new geographies to expand its global presence and support longer-term growth.

Last updated on 13/12/2017

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 11.5 5.0
2016A 32.8 5.0 (1.3) (2.1) N/A 9.9
2017E 28.2 3.4 (2.8) (6.4) N/A 10.6
2018E 42.3 12.5 5.8 9.5 11.8 14.7

Last updated on 12/12/2017

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 13/12/2017

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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