Mederv plc have issued their interim financial statements and directors’ report following a Group board meeting that took place on Tuesday.
In line with expectations due to the unrest in Libya, the Group has reported revenues lower than that generated for the comparative six month period in 2010. However, despite the reported decrease in revenues, the Group managed to turn around profit levels that remained more or less in line with that generated in the same period last year.
“We were quick to react to the situation in Libya by resizing our operations, undertaking a tight cost control exercise, realising alternative revenue streams and maximising Medserv’s potential on all business opportunities,” Karl Bartolo, Group Financial Controller, said
Both the Malta base and the Libya base in Misurata have been affected by the continuing instability in Libya. On the one hand, the Malta base has benefitted by being seen as a reliable and safe haven for the relocation of oil field equipment and for facilitating the repatriation of staff employed by oil companies. “The Malta base was responsible for evacuating most of the workers situated on the oil platforms offshore Libya and our quay in Birzebbugia has been pretty busy especially during February and March” added Mr Godwin Borg, Group Operating Officer. “On the other hand the Misurata base has not operated fully for some months. Having said that except for a couple of casing joints the equipment owned by oil companies on the base remains undamaged and for which storage is being charged.”
The Group report that the Directors are kept informed about the status of the Group’s assets on the Misurata base on a regular basis and to date it appears that whilst there has been damage, this is not serious and most of which is of a nature that can be repaired.
The Group also report that there are no Maltese staff in Misurata at present, but Libyan employees report for duty when possible and they have taken steps to protect the base and the company’s and client’s property as best they can. “We were one of the first to evacuate our Maltese employees. Our Libyan employees remained on the ground and have shown incredible tenacity and bravery. We have been in constant contact, and provided as much support as we possibly could. However only by being in their shoes can you really begin to understand what they went through” said Mr Borg
The Group remains ready to restart operations in Misurata as soon as it is deemed safe to do so and when clients return. They expect that the existing offshore oil and gas platforms would be the first operations to restart and that these will be in the main served from the Malta base.
The Group also looks forward to the restarting of the planned programme for drilling production wells in the offshore Bouri field when hostilities cease, and to the commencement of existing planned programmes of international oil companies for which Medserv already has signed contracts.
In the meantime the Group will continue to take measures in order to safeguard the company’s financial position and to ensure it is able to react speedily to any positive developments in Libya.
The Group also reports that negotiations with the Sicilian partners, TEA Shipping S.R.L., have been successfully concluded. A number of business opportunities both for offshore mainland Italy and also for Sicily have been identified and a business plan has been formulated.
Whilst the timing of the eventual ceasing of hostilities in Libya remains uncertain the Group remains well placed to benefit from the restarting of operations in the Libyan oil industry.