David O’Connor outlines three-pillar strategy to sustain MedservRegis turnaround

MedservRegis plc Executive Chairman David O’Connor has underlined the company’s determination to turn the positive momentum of 2025 into sustainable, long-term growth, while also setting out how management intends to address the looming €30 million bond maturity in 2026.

Speaking to MaltaCEOs.mt, Mr O’Connor acknowledges that the past decade has been a turbulent one for shareholders, with financial performance fluctuating between losses and recovery. “You are right to point out that our financial track record has been volatile,” he says. “This was most visible during the COVID period between 2019 and 2021, which had a massive effect on the energy services industry globally.”

He notes that the merger of Medserv and Regis in 2021 was a turning point, strengthening the balance sheet and broadening the group’s reach. “The combination strengthened our operational reach, broadened our client offering, and provided greater stability and improvement to the merged balance sheet,” Mr O’Connor remarks.

Building predictability in a volatile industry

The Executive Chairman stressed that what differentiates MedservRegis today from its past is a shift from being reactive to proactively building resilience. “What is different today is that we are no longer only reacting to industry cycles but also proactively positioning the company for resilience,” he explains.

The group’s strategy is structured around three pillars:

• Diversification of revenue streams: Expanding beyond traditional oil and gas bases into renewables and non-energy services to reduce dependence on individual clients or regions.
• Operational discipline: Implementing strict cost controls, standardising processes across international operations, and investing in digital systems to improve efficiency.
• Partnerships and long-term contracts: Securing multi-year agreements in the Eastern Mediterranean and Middle East, while also expanding into emerging energy regions such as Namibia, Suriname, and Guyana.

“The first half of 2025 results show encouraging progress, but our focus is squarely on building predictability and resilience over the next three to five years, which is challenging considering the unpredictability of the industry in which we operate,” Mr O’Connor adds.

Preparing for the 2026 bond maturity

Turning to the €30 million bond maturing in February 2026, Mr O’Connor emphasised that management has been proactive. “We are fully aware that the February 2026 maturity is a subject of attention for both bondholders and equity investors. Our approach will balance prudence with flexibility,” he says.

He explained that refinancing discussions are already under way, supported by the company’s improved operational stability and earnings outlook. “Regulatory applications are in progress to repurchase up to €4 million of the outstanding bonds, as well as to launch an exchange offer of up to €25 million for the bonds maturing in 2026,” Mr O’Connor confirms. Operational cash flow is also expected to cover part of the obligation, while selective asset optimisation remains a fallback option, though not a primary strategy.

The Executive Chairman stresses that the message to investors is straightforward: “MedservRegis’s priorities remain delivery of improved profitability with a balanced approach of dividend payments, reducing debt and the continuation of investment in information systems and market growth.”

Positioning for growth

Earlier this month, MedservRegis announced a four-year multi-million-dollar marine logistics base contract in Suriname, beginning in mid-2026. The contract was awarded by a leading multinational oilfield services and engineering contractor and is expected to be serviced using the group’s existing internal resources, without significant capital expenditure.

Taken together, the recent results, strategic initiatives, and new contract awards suggest a company aiming to demonstrate that its turnaround is more than cyclical. As Mr O’Connor summed up: “Our focus is squarely on building predictability and resilience over the next three to five years.”