MedservRegis has announced that its Board of Directors is “presently evaluating” the possibility of effecting a share buy-buy, a bong buy-back, or both.

In a company update posted to the Malta Stock Exchange on Friday, MedservRegis noted that the extent of the buy-back is still being analysed, along with the processes required, including those from a corporate, financial, timing and regulatory perspective.

It assured investors that it will maintain a focus on dividend distribution.

“As and when the Board determines that either or both of these steps are in the best interest of the company, appropriate announcements to the market will be made,” it said.

“There is no guarantee that this will be possible, and if at all, when such buy-back will be carried out.”

The news will be welcomed by local investors that have long been urging companies to do more to add shareholder and bondholder value.

During a Malta Stock Exchange event held in June 2024 meant to discuss measures to increase trading participation and market liquidity, share buy-backs were given prominence as one possible way to do this.

Rizzo Farrugia (Stockbrokers) Director Edward Rizzo, who delivered the keynote address at the event, wrote the following week: “Nowadays, the primary concern for investors is having a possible exit route to enable them to liquidate part or all of their investment if circumstances so require. In my view, the main initiative to increase trading participation and market liquidity is to have a ‘buyer of last resort’ in place wherever possible. The key liquidity providers overseas are companies themselves buying back their own shares coupled with participation by company insiders and also participation by institutional players.”

The announcement by MedservRegis will therefore most likely be received with approval, despite the uncertainty still present as to whether the bond buy-back, share buy-back, or both, will go ahead.

About MedservRegis

MedservRegis provides shore base logistics and engineering services to the offshore oil and gas industry and supply chain management for Oil Country Tubular Goods (OCTG) to support the onshore oil and gas industry.

It operates in the Mediterranean, the Middle East, South America, South Africa, and a number of emerging markets such a Mozambique, Uganda and Angola.

In its most recent financial statements, for the first half of 2024, the group reported €32.2 million in revenue, EBITDA of €8.07 million, operating profit of €2.88 million, and profit before tax of €353,000.