Medserv – Momentum to build in H2
While Medserv’s H117 results announced on Wednesday reflect a slower than expected performance in each of the key divisions, both the Group’s announcement and the Edison Investment Update report that Medserv looks set to deliver sequential improvement in H217 and the Group’s outlook remains positive as substantial revenue growth is forecast for years 2018 to 2020.
In their Update Report, Edison have lowered their estimates for the financial year 2017 following the publication of Medserv’s results for the first half of the year; however FY18 estimates remain largely unchanged as momentum from the increased drilling programme from Q4 of this year is expected to continue and run into next year. As new territories are brought on stream, Edison report that the potential for the substantial revenue growth for the 2018-2020 period discussed in the interim statement should become more tangible.
This growth forecast for years 2018 through 2020 is based on drilling projects and workover programs already contracted, as well as securing two new geographic markets by next year. The Group also reports that Medserv is engaged in advanced negotiations to conclude a strategically long-term contract for the provision of shore base services in a new geographical area with significant growth potential.