Medserv is reaping the benefits of its hard work to keep its standards elevated, providing offshore operations with a full spectrum of services - Medserv chairman Anthony Diacono.

Efforts to maximise on goodwill and adapt rigorously to clients' requirements led Medserv plc to record profits last year despite the economic climate, chairman Anthony Diacono told The Times Business.

Medserv, the logistics and support company servicing the international oil and gas industry, last week reported pre-tax profits for the year ended December 31, 2009, had announced to €3,183,104 over 2008's €975,421.

"The effects of the recession hit our industry too, and demand for oil and gas slumped," Mr Diacono said. "This resulted in exploration activity being postponed. We concentrated our efforts to maximise on the goodwill we have managed to build over the years within the industry, and positioned ourselves to offer owners of rigs and barges an opportunity to make use of our skilled labour and dedicated facility for the oil and gas industry."

In its performance review, Medserv said its Malta subsidiary had attracted business including the servicing of rigs and specialised vessels to the island. Medserv Misurata Freezone Company, the company's subsidiary in Libya, continued its strong performance, supporting offshore-exploration operations. It contributed 31 per cent of the earnings attributable to the company's owners.

Medserv plc, the group holding company, was listed on the Malta Stock Exchange in 2006. The original company was established in 1974. Medserv boasts an illustrious client portfolio including industry giants Halliburton, Baker Hughes, Schlumberger, Exxon, Saipem, Hess Corporation, Eni NA, Petrobas and Gazprom.

Mr Diacono said Medserv was reaping the benefits of its hard work to keep its standards elevated, providing offshore operations with a full spectrum of services.

"There exist competitors around the Mediterranean, both on the European and North African side," Mr Diacono emphasised. "Conscious of this, we work hard at making ourselves relevant to our customers' requirements and help them add value to their project. We have been doing this for a number of years, and we are now reaping the benefits of a professional approach. Our two bases in Malta and Libya are strategically positioned and this in no small way helps us offer a very good product." In Libya, Medserv's operation builds on 30 years' experience in the market to tap new opportunities. As the most important producer of fossil fuel in North Africa, Libya's proximity to Europe - as opposed to the traditional suppliers of oil and gas in the Middle East - and its proven levels of yet untapped reserves will attract the investment required for the country to reach its ambitious objective of trebling its output over the next few years, Mr Diacono pointed out.

The significant growth rate in Medserv's operations resulted in strengthening group resources to accommodate the influx in business and a right-size structure for subsidiaries was implemented.

"We consider each subsidiary a totally independent company, competing with each other," the chairman explained. "Having said this, our subsidiaries do complement each other. Our clients are offered different solutions, giving them the opportunity to run a better operation. We obviously maximise on the goodwill that our brand has managed to gain in the industry over the years. Our client has the right to expect the level of professional service associated with our brand, irrespective of which subsidiary is engaged. We also manage to offer competitive rates to our clients by tapping in to all the resources found in our firms."

Medserv has declared itself "cautiously optimistic" on forecasted projects being realised this year and has said it intended to persevere with efforts to enter new markets like Egypt and Italy.

Mr Diacono said Medserv, "a very market driven company", was being invited by clients to accompany them on projects around the Mediterranean.

"We have responded to such a request in Egypt," he added. "However, we must admit that this is taking longer than anticipated as the slowdown in the market has inevitably led to projects being stalled. Italy, on the other hand, is running to plan."