Medserv

MSE: MDS

€64.5m market cap

€1.2 last close

Medserv is a Malta-based provider of integrated offshore logistics and services in support of drilling operations in the Mediterranean and the rest of the world. The acquisition of the METS companies in 2016 diversified Mederv into onshore steel tube stockholding and servicing for countries in the Middle East.

Investment summary

Medserv’s strategy to expand its geographic reach and range of services is bearing fruit. FY18 results met revenue and company-defined adjusted EBITDA guidance. The Suriname offshore base management contract is driving growth in FY19, with group revenues set to double. Even in other territories underlying progress is occurring, notably in Egypt, Cyprus and Malta, with potential for new business for both ILSS and OCTG. H119 results confirmed the progress. The major shareholders’ intentions to find a strategic investor continues and the oil market backdrop is supportive for all elements.

Y/E Dec
Revenue (€m)
EBITDA (€m)
PBT (€m)
EPS (c)
P/E (x)
P/CF (x)
2017A 28.8 3.7 (3.6) (5.55) N/A 35.8
2018A 36.2 6.3 (3.4) (6.76) N/A 9.8
2019E 63.1 13.1 2.4 5.2 23.1 5.9
2020E 57.2 14.8 4.2 8.9 13.5 4.9
Industry outlook

Medserv operates in the upstream oil and gas segment, providing onshore bases in the Mediterranean, the Middle East and the Americas 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 FY19–FY21 period is becoming more tangible.

Last updated on 01/11/2019
Sector
Industrials
Share price graph
Balance sheet
Forecast net debt (€m) 50
Forecast gearing ratio (%) 287
Price performance
%
1m
3m
12m
Actual (4.8) 3.5 17.7
Relative* (3.4) 3.8 9.0
52-week high/low €1.3/€0.9
*% relative to local index
Key management
Anthony S. Diacono Chairman
Karl Bartolo CEO
Silvio Camilleri CFO