MedservRegis CEO optimistic amid ‘resurgence in market appetite’ for investment in oil and gas projects

CEO David S. O’Connor has expressed optimism about the opportunities that lie ahead for MedservRegis Group, after a recent upturn in demand for investment in oil and gas developments.

His statements were made in the Malta-based offshore logistics services and engineering group’s Annual Report for the financial year ended 31st December 2023, a year which marked the two-year anniversary since Medserv plc became the owner of Regis Holdings Limited, paving the way for the effective merger of the two companies. During 2023, the group registered €17.5 million in earnings before interest, tax, depreciation and amortisation (EBITDA), a rise of 53.5 per cent from the previous year. This was largely a result of revenue rising to €73.9 million (2022: €66.9 million) and a stabilisation in cost of sales and administrative expenses.

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.

In his analysis of the results, Mr O’Connor said that the group achieved a “promising and positive” performance in 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.”

As he looked ahead to the future, Mr O’Connor said he is optimistic about future opportunities, saying it is “well-positioned” to navigate the complexities of the evolving market landscape, particularly given a “resurgence in market appetite” for investment in oil and gas developments.

Mr O’Connor referred to a recent report by Wood Mackenzie, a global provider of data and analytics for the energy transition, which noted that up to 30 major oil and gas projects with a total investment of $125 billion (€116.7 billion) and potential resources of 14 billion barrels of oil equivalent are set to be approved in 2024.

Demand in the oil and gas sector has experienced a strong rebound following the COVID-19 pandemic, particularly since the rollout of low-carbon energy systems is going to take time. While growth in oil demand is set to continue rising for several years, growth will slow progressively after 2024, the research highlighted.

The report noted that increased activity is expected from national oil companies (NOCs) in the Middle East and major industry players, especially in deepwater resources. It also highlighted that the average emissions intensity for identified projects is noted to be below the global upstream average, thus reflecting a commitment to meeting emission reduction goals.

In the Annual Report, Mr O’Connor also said MedservRegis 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. Our agility and adaptability will continue to be instrumental in addressing the challenges posed by the energy transition and positioning ourselves as a trusted partner to our clients,” he added.

Social image: MedservRegis Group