TIDMGMS
RNS Number : 1994F
Gulf Marine Services PLC
16 May 2017
Gulf Marine Services PLC
OPERATIONAL UPDATE
Gulf Marine Services (LSE: GMS), the leading provider of
advanced self-propelled self-elevating support vessels (SESVs)
serving the offshore oil, gas and renewable energy sectors,
provides the following operational update for the period 1 January
2017 to 15 May 2017, ahead of its AGM today.
GMS continues to focus on maximising vessel utilisation(1) in
the current market environment and has achieved a rate of 56% for
Q1 2017, an improving level compared to that seen for Q4 2016 of
46%. The secured backlog (comprising firm and extension options) as
at 1 May 2017 has increased to US$ 251.3 million (31 December 2016
US$ 174.8 million).
As previously announced in 2017, a 36-month contract (including
options) was awarded for one of the Group's Mid-Size Class vessels
in the MENA region to support well intervention activities for a
national oil company and this commenced in Q1 2017. Two new
long-term contracts for Large Class vessels in Europe were also
announced in 2017 to support wind farm projects for an
international energy company. These are scheduled to commence in Q2
2018, one contract has a charter period of 26 months (including
options) and the other 15 months (including options).
Development of New Services
The cantilever system on the Group's new Large Class vessel GMS
Evolution is scheduled to be ready for operations in June 2017
following the completion of sea trials. Commissioning is
well-advanced and progressing as expected. The cantilever system
will allow GMS to provide a greater range of well intervention
services from the vessel and to compete for well workover activity
that was previously only able to be carried out from more expensive
and less efficient non-propelled jackup drilling rigs.
Financial Position
The Group had a net debt level (being bank borrowings less cash)
at 1 May 2017 of US$ 369.9 million. Deleveraging is progressing as
planned with year end net debt expected to be in line with previous
guidance. Our progress in securing contracts and underlying trading
are in line with expectations for 2017.
Duncan Anderson, Chief Executive Officer of GMS, said:
"We are encouraged by our recent contract awards and the
continued strengthening of tender activity in our core regions of
Europe and the Middle East. It is also reassuring to see activity
within the European renewable energy market returning, where we
have gained a new client following the award of two long-term
charters commencing in Q2 2018.
"All of this is helpful as we seek further improvement in vessel
utilisation and we are encouraged with the levels being achieved
for our Large Class and Mid-Size Class vessels in this regard.
There is clearly more to do, and we are confident that much higher
utilisation levels will again be achievable for our fleet. We
expect the pace of recovery to build momentum, with utilisation
increasing ahead of day rates.
"The strategic expansion of our fleet and services, and the
cantilever capability in particular, has ensured we can offer our
clients flexible and cost-effective support solutions for a diverse
range of offshore operations. GMS continues to be very
well-positioned to maximise new opportunities as the market
recovers, while recognising that the actual timing of contract
awards, and accordingly the trajectory of improvement, is dependent
on our clients' own operational requirements."
(1) Utilisation is defined as the percentage of available days
in a relevant period during which an SESV is under contract and in
respect of which a customer is paying a day rate for the charter of
the SESV.
Enquiries
For further information please contact:
Gulf Marine Services
PLC Brunswick
Duncan Anderson Patrick Handley -
John Brown UK
Tel: +971 (2) 5028888 Will Medvei - UK
Anne Toomey Tel: +44 (0) 20 7404
Tel: +44 (0) 1296 5959
622736 Jade Mamarbachi -
UAE
Tel: +971 (0) 50 600
3829
Notes to Editors:
Gulf Marine Services PLC ('GMS', 'the Company' or 'the Group'),
a company listed on the London Stock Exchange, was founded in Abu
Dhabi in 1977 and has become the leading provider of advanced
self-propelled self-elevating support vessels (SESVs) in the world.
The fleet serves the oil, gas and renewable energy industries from
its offices in the United Arab Emirates, Saudi Arabia, Malaysia and
the United Kingdom. The Group's assets are capable of serving
clients' requirements across the globe, including the Middle East,
South East Asia, West Africa and Europe.
The GMS SESV fleet of 15 vessels is amongst the youngest in the
industry, with an average age of eight years. The vessels support
GMS' clients in a broad range of offshore oil and gas platform
refurbishment and maintenance activities, well intervention work
and offshore wind turbine maintenance work (which are opex-led
activities), as well as offshore oil and gas platform installation
and decommissioning and offshore wind turbine installation (which
are capex-led activities).
The SESVs are four-legged vessels and are self-propelled, which
means they do not require tugs or similar support vessels for moves
between locations in the field; this makes them significantly more
cost-effective and time-efficient than conventional offshore
support vessels without self-propulsion. They have a large deck
space, crane capacity and accommodation facilities that can be
adapted to the requirements of the Group's clients. A well workover
cantilever system that has been developed for the Large Class
vessels will be available to clients for the first time in 2017.
Developed in partnership with leading Norwegian designer Dwellop
A.S., the innovative cantilever allows GMS to significantly
increase the level and type of well intervention activities that
can be carried out from these vessels to include operations that
have traditionally been performed by more expensive non-propelled
drilling rigs.
The fleet is categorised by size into Large Class vessels
(operating in water depth of up to 80m, with crane capacity of up
to 400 tonnes and accommodation for up to 300 people), Mid-Size
Class vessels (operating in water depth up to 55m, with crane
capacity of up to 150 tonnes and accommodation for up to 300
people) and Small Class vessels (operating in water depth of up to
45m, with crane capacity of up to 45 tonnes and accommodation for
up to 300 people).
Demand for GMS' vessels is predominantly driven by their premium
and cost-effective capabilities, underpinned by the need to
maintain ageing oil and gas infrastructure and the increasing use
of enhanced oil recovery techniques to offset declining production
profiles.
www.gmsuae.com
Disclaimer
The content of the Gulf Marine Services PLC website should not
be considered to form a part of or be incorporated into this
announcement.
Cautionary Statement
This announcement includes statements that are forward-looking
in nature. All statements other than statements of historical fact
are capable of interpretation as forward-looking statements. These
statements may generally, but not always, be identified by the use
of words such as 'will', 'should', 'could', 'estimate', 'goals',
'outlook', 'probably', 'project', 'risks', 'schedule', 'seek',
'target', 'expects', 'is expected to', 'aims', 'may', 'objective',
'is likely to', 'intends', 'believes', 'anticipates', 'plans', 'we
see' or similar expressions. By their nature these forward-looking
statements involve numerous assumptions, risks and uncertainties,
both general and specific, as they relate to events and depend on
circumstances that might occur in the future.
Accordingly, the actual results, operations, performance or
achievements of the Company and its subsidiaries may be materially
different from any future results, operations, performance or
achievements expressed or implied by such forward-looking
statements, due to known and unknown risks, uncertainties and other
factors. Neither Gulf Marine Services PLC nor any of its
subsidiaries undertake any obligation to publicly update or revise
any forward-looking statement as a result of new information,
future events or other information. No part of this announcement
constitutes, or shall be taken to constitute, an invitation or
inducement to invest the Company or any other entity, and must not
be relied upon in any way in connection with any investment
decision. All written and oral forward-looking statements
attributable to the Company or to persons acting on the Company's
behalf are expressly qualified in their entirety by the cautionary
statements referred to above.
This information is provided by RNS
The company news service from the London Stock Exchange
END
MSCGGUBWAUPMGRA
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