MedservRegis Group reported €17.5 million in earnings before interest, tax, depreciation and amortisation (EBITDA) in 2023, a staggering increase of 53.5 per cent over 2022 (€11.4 million).
These results were published in MedservRegis Group’s Annual Report for the financial year ended 31st December 2023, a year which marked the two-year anniversary since Medserv plc announced a share-for-share exchange with Regis Holdings Limited. This agreement had resulted in Medserv plc owning 100 per cent of Regis Holdings Limited’s share capital and voting rights, and was then followed by the effective merger of the two companies.
MedservRegis is a Malta-based group that provides offshore logistics services and engineering for the oil and gas supply chain, while also offering equipment, procurement, and specialised services to both national and international energy companies.
During 2023, the group brought in €73.9 million in total revenue, a 10.4 per cent increase over the previous year (2022: €66.9 million). This increase is largely attributable to an additional offshore drilling campaign secured in Morocco, together with an improved performance within the oil country tubular goods (OCTG) segment in the Middle East, particularly in Iraq. In fact, revenue generated from its operations in the Middle East amounted to €29.8 million, representing 40.3 per cent of total revenue for the year.
62 per cent of the group’s revenue was generated from integrated logistics support services (ILSS), 37 per cent from OCTG, and one per cent from photovoltaic income.
Cost of sales for 2023 amounted to €54.6 million, slightly lower than that of 2022 (€55.4 million), while administrative expenses rose marginally from €13.1 million in 2022 to €13.2 million in 2023. The majority of the expenses in 2023 were tied to the direct cost of services (€35.1 million) and employee benefits (€12.4 million).
The aforementioned EBITDA figure has been adjusted for net finance income, depreciation, amortisation of intangible assets, net impairment loss on property, plant and equipment, impairment loss on intangible assets, and impairment loss on goodwill.
In terms of profit before tax for the year, this came in at €1.7 million during 2023, significantly higher than the €23,371 registered in 2022.
Total assets at 31st December 2023 were recorded at €145.2 million, contracting from the €151.7 million reported at the end of the previous year. The consolidated equity attributable to MedservRegis Group’s owners as at the end of 2023 amounted to €56.9 million.
The group stated that no reserves were available for distribution as at 31st December 2023. Last January, MedservRegis announced that it would be distributing its first dividend in years, after it had gone through a period of losses, a merger, together with an industry slowdown due to the COVID-19 pandemic.
MedservRegis Group Chairman Anthony S. Diacono
In his opening statement, Chairman Anthony S. Diacono said that the “strong belief” in MedservRegis Group’s vision and “stronger execution of the plans put in place” characterised 2023.
“Next year, our group shall be celebrating its 50th anniversary. It is a well-known fact that to forecast the future, one must look at the past too. The resilience shown by the group, despite many international and natural challenges it had to face is a testament to the strong goodwill developed by our company in the industry over the years. It also validates the sound long-term strategic decisions adopted,” he continued.
He noted that it is “unbelievable” that it is only two years since the merger took place. He noted that the financial results, together with the opportunities that lay ahead stand as an indicator of the “successful merger” of the two groups, “creating an exciting and strong future.”
Mr Diacono added that discussions are “ongoing” on how to position MedservRegis Group “in the broadest manner possible,” all while aligning itself with the aim to deliver value to stakeholders.
“MedservRegis plc is looking forward to the future with enthusiasm and confidence. Onwards to another 50 years of activity,” he concluded.
MedservRegis Group CEO David S. O'Connor
From his part, CEO David S. O’Connor remarked that the group achieved “promising and positive” results during 2023, noting that it has made “significant strides” towards solidifying its foundation and enhancing its capabilities.
He added that the group has now expanded to being present in 14 different locations, a feat that will position MedservRegis Group well to “drive the business forward.”
Mr O’Connor said that the group recognises the complexities and challenges that the energy transition is putting forward to its industry. “Despite the growing consensus that this transition will take longer and be more intricate than anticipated, we remain steadfast in our commitment to support our clients through this journey,” he added.
He expressed his optimism about the opportunities that lie ahead, affirming that the group is “well-positioned” to navigate the complexities of the evolving market landscape, particularly given a recent “resurgence in market appetite” for investment in oil and gas developments.
