MedservRegis p l c : Approval of Interim Financial Statements

COMPANY ANNOUNCEMENT

MEDSERVREGIS P.L.C.

(THE "COMPANY")

Half Yearly Report

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The Board of Directors has today approved the half yearly report of the Company for the financial period 1 January 2023 to 30 June 2023, a copy of which is attached hereto and will be available for public inspection in electronic form on the Company's website shortly: https://www.medservenergy.com/medservregis-plc-

financial-statements

Unquote

Laragh Cassar

Company Secretary

MedservRegis p.l.c.

Interim Report

CONDENSED CONSOLIDATED INTERIM

FINANCIAL STATEMENTS AND DIRECTORS' REPORT

(UNAUDITED)

For the Period 1 January 2023 to 30 June 2023

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MedservRegis p.l.c.

Directors' Report pursuant to the Capital Market Rules 5.75.2

For the Period 1 January 2023 to 30 June 2023

This report is published in terms of Chapter 5 of the Capital Market Rules of the Listing Authority, Malta Financial Services Authority and the Prevention of Financial Markets Abuse Act 2005.

The condensed consolidated interim financial statement figures have been extracted from the Group's unaudited accounts for the six months ended 30 June 2023 and for its comparative period in 2022 (unaudited). The comparative consolidated statement of financial position has been extracted from the audited financial statements as at 31 December 2022. These condensed consolidated interim financial statements have been prepared in accordance with accounting standards adopted for use in the EU for interim financial statements (EU adopted IAS 34 - Interim Financial Reporting). These condensed consolidated interim financial statements were approved by the Board of Directors on 30 August 2023. In terms of the Capital Market Rule 5.75.5, the directors state that this half-yearly financial report has not been audited or reviewed by the Group's independent auditors.

Principal activities

The Group's principal activities, through its subsidiaries, consist of providing shore base logistics and engineering services to the offshore oil and gas industry and supply chain management for Oil Country Tubular Goods (OCTG) to support the onshore oil and gas industry. It also provides equipment, procurement, and specialised services to a wide range of customers, including national and international energy companies, drilling and mining companies, as well as product and equipment manufacturers and other heavy industry-related contractors across the globe, reaching the Mediterranean countries, Middle East, South America, South Africa and a number of emerging markets such as Mozambique, Uganda and Angola.

The Group operates under three trading names, namely 'Medserv' in the Mediterranean basin, 'METS' being Middle East Tubular Services in the Middle East region, and 'Regis' in sub-Saharan market.

Board of Directors

Anthony Diacono

Carmelo (a.k.a. Karl) Bartolo

Laragh Cassar

David S. O'Connor

Olivier N. Bernard

Keith N. Grunow

Jean Pierre Lhote

Monica De Oliveira Vilabril

Registered Office

Port of Marsaxlokk

Birzebbugia, BBG 3011

Malta

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MedservRegis p.l.c.

Directors' Report pursuant to the Capital Market Rules 5.75.2 (continued)

For the Period 1 January 2023 to 30 June 2023

Review of performance

The Group's reported turnover for the six-month period ended 30 June 2023 amounted to €32,000,385 (30 June 2022: €26,075,032). The Group's reported adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) for the six-month period ended 30 June 2023 amounted to €8,992,633 (30 June 2022: €3,682,708).

After recognising depreciation amounting to €4,499,805 (30 June 2022: €3,412,040), amortisation of intangible

assets of €738,293 (30 June 2022: €1,028,186), and impairment loss on property, plant and equipment of €nil (30

June 2022: €17,185), the Group registered an operating profit amounting to €3,754,535 (30 June 2022: operating loss of €774,703).

After deducting the net finance costs amounting to €5,544,185 (30 June 2022: net finance income of €166,223), the

Group registered a loss before tax of €1,789,650 (30 June 2022: €608,480). Net finance costs include a one time foreign exchange loss on non-operating activities amounting to €3,992,600 resulting mainly from the devaluation in the exchange rates of the Angolan kwanza and the Egyptian pound during the first half of 2023 (30 June 2022: foreign exchange gain of €2,046,164). As of 30 June 2023, the Group's subsidiary, Verger investimentos Lda, holds cash at bank amounting to €4,878,244 (31 December 2022: €8,926,815) that are subject to exchange controls on remittance outside of the jurisdiction, limiting the Group's ability to access this cash and reduce exposure to foreign exchange losses.

Loss from continuing operations after accounting for taxation amounted to €1,960,936 (30 June 2022: €664,827).

Reported in 'Other Comprehensive Income' are foreign currency translation differences arising from translating the financial results of the Company's subsidiaries to its reporting currency in Euro. This amounts to positive €723,231 (30 June 2022: €1,809,863). In addition, the gain on net investment hedge amounts to €161,810 (30 June 2022: net loss on net investment hedge of €690,385). Total comprehensive income amounts to negative €1,075,895 (30 June 2022: positive €454,651). The increase in EBITDA during H1 2023 has resulted in an improvement in the net cash generated from operating activities to €4.7 million compared to H1 2022.

The Group's equity position of MedservRegis p.l.c. as at the financial reporting date stood at €59.3 million (2022: €60.4 million), representing an decrease of €1.1 million as a result of the negative total comprehensive income generated during the first six months of the year.

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MedservRegis p.l.c.

Directors' Report pursuant to the Capital Market Rules 5.75.2 (continued)

For the Period 1 January 2023 to 30 June 2023

Outlook

The global landscape of the international and offshore markets is witnessing a promising surge in upstream investment momentum. Several factors are propelling this growth:

• Resilient Long-Cycle Offshore Developments: These developments have consistently shown strength and are a driving force behind the market's growth.
• Production Capacity Expansions: As the demand for energy sources grows, there's a concerted effort to expand production capacities to meet these demands.
• Revival of Global Exploration and Appraisal: The renewed interest and investment in global exploration and appraisal activities indicate a robust future for the sector.
• Gas as a Critical Fuel Source: The global recognition of gas, not just as an energy source, but as a pivotal element for energy security and the ongoing energy transition, underscores its importance in the current market scenario.

This positive trajectory has established a substantial baseload of activity. The belief is that both the duration and magnitude of this upcycle, encompassing both land and offshore sectors, are noteworthy. Our company stands as a testament to this growth, with our esteemed clientele choosing us as their preferred partner.

The latter half of 2023 is expected to see international spending gain even more traction. This ongoing cycle resonates profoundly with our group's core competencies, further bolstering our confidence in achieving our financial goals for the year.

Libya

Economic and Political Climate: As highlighted by the Economist Intelligence Unit, Libya stands at a pivotal political crossroads. The forthcoming steps in its political trajectory will have significant security and economic implications. Given the deep-seated divisions among the ruling factions, presidential and parliamentary elections are anticipated to be postponed until 2024. While we project an increase in Libya's oil output from 2023-27, intermittent disruptions in oil production are expected due to persistent political disagreements.

Market Size and Potential: The recent announcement by ENI in January 2023, detailing an $8 billion investment in Libya, coupled with the lifting of Force Majeure on three operational assets that had been dormant since 2014, underscores the vast potential in the country.

Local Competitors and Market Share: Given the preference of most operators in Libya to manage their offshore operations in Libyan waters from Malta, MedservRegis remains a pivotal player for all stakeholders. With operational capabilities on Libyan terrain, specifically at the base in Misurata, MedservRegis is poised to support all clients from this location.