MedservRegis, an integrated logistics specialist primarily servicing the energy (oil and gas) and mining sectors, has announced that it will be issuing a net interim dividend of €1 million.

The dividend is the first distribution of profits in years, with the company going through years of losses, a merger and an industry slowdown due to the COVID-19 pandemic in the intervening years.

The interim dividend of €0.0098389 per share will be distributed on 29th February to shareholders registered by 6th February.

In a market update posted to the Malta Stock Exchange on Thursday (yesterday), MedservRegis said the dividend represents profits generated by the company arising from dividends distributed within the group during January 2024.

The decision to distribute profits follows a reduction of the company’s share premium account to offset accumulated losses at company level, agreed to by shareholders during an extraordinary general meeting held in October 2023.

In a shareholder circular shared prior to that meeting, MedservRegis explained that reducing the share premium account increases its flexibility to pay dividends.

The last time Medserv paid a dividend was in 2015 when the company had distributed a record cash dividend of €2 million.

MedservRegis emerged in 2021 following a share-for-share exchange with Regis Holdings Limited. This resulted in Medserv plc owning 100 per cent of the share capital and voting rights in Regis, followed by the effective merger of the two companies.

Between 2017 and 2020 (prior to the merger with Regis), Medserv recorded aggregate losses of €27.7 million. In contrast, MedservRegis registered a profit of €0.5 million in 2022.

During the first nine months of 2023, MedservRegis registered €50.3 million in revenue, with EBITDA amounting to €11.7 million, a margin of 23.3 per cent.