Medserv

MSE: MDS

€60.2m market cap

€1.12 last close

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 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, including the recent contract win in Suriname, which may provide further leads. Medserv’s latest interim statement confirmed the company is leveraging end-market strength with order books strengthening and providing momentum in both divisions. The company expects to meet FY18 guidance and there has been no update on sourcing a strategic purchaser for key shareholdings. Overall, the market backdrop for Medserv remains supportive both for new territories as well as the established activity.

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 98.6
2017A 28.8 3.7 (3.6) (5.6) N/A 33.4
2018E 36.0 6.5 (1.4) (1.4) N/A N/A
2019E 39.3 10.5 2.2 4.7 23.8 7.4
Last updated on 22/03/2019
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 22/03/2019
Sector
Industrials
Share price graph
Balance sheet
Forecast net debt (€m) 54.6
Forecast gearing ratio (%) 238
Price performance
%
1m
3m
12m
Actual 1.8 (2.6) (2.6)
Relative* (3.7) (7.8) (6.9)
52-week high/low €1.2/€1.0
*% relative to local index
Key management
Anthony S. Diacono Chairman
Karl Bartolo CEO
Silvio Camilleri CFO