Medserv

MSE: MDS

€34.9m market cap

€0.65 last close

Medserv is a Malta-based provider of integrated offshore logistics and services in support of drilling operations in the Mediterranean, MENA and South America. The acquisition of the METS companies in 2016 diversified Medserv 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 remains but COVID-19 and lower oil prices will undoubtedly delay the progress. The development of the new oil and gas assets in the eastern Mediterranean offer the prospect of recovery in the medium and longer term. The major shareholders’ intentions to find a strategic investor has led to a proposed reverse takeover by AMT of Switzerland, which should underpin future expansion. The conditional agreement deadline has now been extended into April.

Y/E Dec
Revenue (€m)
EBITDA (€m)
PBT (€m)
EPS (c)
P/E (x)
P/CF (x)
2017A 28.8 3.7 (3.6) (5.6) N/A 19.4
2018A 36.2 6.3 (3.4) (6.8) N/A 5.3
2019E 66.4 13.4 2.4 5.2 12.5 3.3
2020E 44.6 12.0 2.3 5.1 12.7 3.1
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 future revenue growth remains and the deal with AMT should strengthen the service offering.

Last updated on 06/08/2020
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Sector
Industrials
Share price graph
Balance sheet
Forecast net debt (€m) 50.3
Forecast gearing ratio (%) 289
Price performance
%
1m
3m
12m
Actual (5.8) (20.7) (44.0)
Relative* (1.0) (16.4) (29.1)
52-week high/low €1.3/€0.6
*% relative to local index
Key management
Anthony S. Diacono Chairman
Karl Bartolo CEO
Silvio Camilleri CFO

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