MedservRegis plc published its 2025 annual report on April 28 and delivered a presentation to financial analysts on May 5 titled ‘Engineered growth’. Its financial performance in 2025 confirms that the financial turnaround of the past three years is now beginning to translate into more tangible shareholder returns.
This is being supported by a significant reduction in the leverage, the central role of the Malta shore base in the context of the evolving energy and geopolitical map in the Mediterranean, as well as the group’s increased geographical footprint.
Revenue surged by 49.4% to €104.6 million, which materially exceeds the €84.1 million forecast in the revised financial analysis summary published in October 2025 at the time of the bond exchange programme in Q4 2025. Adjusted EBITDA rose 36.6% in 2025 to €22 million (forecast: €19.5 million), while net profit climbed to €5.5 million compared to €4.7 million forecast.
ILSS segment surge
The 49% jump in revenue in 2025 reflects the unprecedented ramp-up at the Malta shore base in conjunction with the works undertaken for the sizeable offshore Libya drilling programme being conducted by Mellitah Oil & Gas, a joint venture between Eni and Libya’s National Oil Corporation. The higher revenue also emanates from the reactivation of the Misurata supply base in Q4 and additional contracts in Cyprus and Egypt.
The Integrated Logistics Support Services (ILSS) division accounted for 67.2% of overall revenue at €70.3 million, while the Oil Country Tubular Goods (OCTG) segment contributed a further 32.4% at €33.9 million.
The ILSS segment was the principal driver of the strong upturn in 2025 with revenue almost doubling from the previous year. This was almost entirely attributable to the Malta shore base (revenue jumped 219% from the prior year) on the back of the drilling campaigns offshore Libya.
Group operating profit nearly doubled to €12.2 million, while the adjusted EBITDA margin edged down to 21% from 23%, reflecting the change in revenue mix as lower-margin logistics work scaled rapidly in Q4 2025. Meanwhile, operating cash flow remained strong at €14.8 million, and given the €5.3 million capital expenditure, the group can easily support both the dividend and the continued focus on debt reduction.
Following the strong outperformance in 2025 compared to the projections published in the October 2025 financial analysis summary, the 2026 forecasts also published in October 2025, that had envisaged revenue of €87 million and EBITDA of €19 million, may need to be revised given the ramp-up at the Malta shore base. In fact, the 2026 outlook provided in the latest annual report confirmed that offshore drilling activity in Libya is expected to remain strong and the group will continue to build on the momentum recorded in Malta, Egypt, Iraq and Oman.
The revised projections for 2026 due to be published by the end of next month should also take into account any revenue from the possible reactivation of the TotalEnergies LNG project in Mozambique, the new long-term premium steel pipe contract in Saudi Arabia, the consolidation of the site support contract in Egypt, and the start of the two long-term logistics and agency agreements in Suriname covering the period 2026 to 2029.
“Group operating profit nearly doubled to €12.2 million”
A transformed balance sheet
The group’s credit metrics have improved significantly and MedservRegis is now in a fundamentally stronger position to absorb any possible cyclical downturn in the offshore services market. This is a determining factor for shareholders and bondholders when assessing the group’s creditworthiness and financial strength following the very challenging period over the past several years.
While net debt (including lease liabilities) remained stable at €50 million over the past four years, given the surge in EBITDA to €22 million, the leverage ratio improved materially from 4.69 times in 2022 to 2.49 times. Following the repayment of the outstanding bonds amounting to €13.6 million in February 2026, the leverage ratio should improve further in 2026.
The next bond maturity is in December 2029 when the €13 million 5% secured notes are due to be redeemed. This provides ample flexibility for the board to consider sustained and growing dividend payments while retaining sufficient resources for further capital expenditure and continued debt reduction.
Moreover, at the upcoming AGM on May 27, shareholders will be asked to consider a share buy-back authorisation of up to one million shares (representing 0.98% of issued share capital) within a price range of between €0.65 and €1.10 per share over an 18-month period, which is linked to a long-term incentive plan for the newly appointed co-CEOs covering the three-year period from 2026 to 2028.
The importance of the Mediterranean as part of a wider footprint
MedservRegis’ expanding geographical footprint is another important matter for consideration amid the evolving geopolitical developments impacting the energy sector.
The dramatic resurgence of activity at the Malta shore base supporting offshore drilling campaigns in Libyan territorial waters at unprecedented scale shows the importance of the Mediterranean region. Moreover, the reactivation of the Misurata supply base in Q4 2025, which is a strategically significant development, combined with the ongoing contracts in Cyprus and Egypt, shows how MedservRegis has effectively positioned itself as the integrated logistics backbone for the Mediterranean offshore industry.
This positioning must be viewed within the context of the Mediterranean’s growing strategic importance as European governments and utility companies seek to diversify away from Russian gas.
Beyond the Mediterranean, the OCTG business in the Middle East continues to deliver a solid performance. The expansion into Saudi Arabia under a long-term premium steel pipe contract and the construction of the Abu Dhabi machine shop facility due to be completed in 2026, should translate into further profitable growth and consolidate the group’s position as the principal independent OCTG service provider in the wider Gulf region.
Beyond the core business across the Mediterranean and Middle East, MedservRegis is deliberately positioning itself across some emerging frontier basins.
In Sub-Saharan Africa, apart from the presence in Mozambique, which could be an important catalyst for 2026 and beyond, MedservRegis has established a presence in Namibia following the important international offshore discoveries by Shell, TotalEnergies and other major oil and gas producers.
In the Americas, the group has secured two long-term logistics and agency agreements covering Suriname for the 2026 to 2029 period and established a start-up operation in Guyana, which is regarded as one of the fastest-growing energy markets.
At the AGM on May 27, shareholders should be attentive to any statements made with regards to (i) the expected duration and scale of the sizeable drilling programme offshore Libya; (ii) (given the improved cash flow and with the next bond repayment in December 2029), the capital allocation framework between dividend progression, selective capacity expansion in frontier markets and further debt reduction; and (iii) the extent to which the 2026 expected performance will differ from the forecasts published in October 2025 and the actual performance of last year.
Following MedservRegis’ very successful financial turnaround, what is important for shareholders is how decisively the group can capitalise on the strong position it now occupies across a number of very important locations in the changing energy market.
Rizzo, Farrugia & Co. (Stockbrokers) Ltd, ‘Rizzo Farrugia’, is a member of the Malta Stock Exchange and licensed by the Malta Financial Services Authority. This report has been prepared in accordance with legal requirements. It has not been disclosed to the company/s herein mentioned before its publication. It is based on public information only and is published solely for informational purposes and is not to be construed as a solicitation or an offer to buy or sell any securities or related financial instruments. The author and other relevant persons may not trade in the securities to which this report relates (other than executing unsolicited client orders) until such time as the recipients of this report have had a reasonable opportunity to act thereon. Rizzo Farrugia, its directors, the author of this report, other employees or Rizzo Farrugia on behalf of its clients, have holdings in the securities herein mentioned and may at any time make purchases and/or sales in them as principal or agent, and may also have other business relationships with the company/s. Stock markets are volatile and subject to fluctuations which cannot be reasonably foreseen. Past performance is not necessarily indicative of future results. Neither Rizzo Farrugia, nor any of its directors or employees accept any liability for any loss or damage arising out of the use of all or any part thereof and no representation or warranty is provided in respect of the reliability of the information contained in this report.
© 2026 Rizzo, Farrugia & Co. (Stockbrokers) Ltd. All rights reserved.
