TIDMGMS
RNS Number : 4598N
Gulf Marine Services PLC
09 August 2017
Gulf Marine Services PLC
('Gulf Marine Services', 'GMS', 'the Company' or 'the
Group')
Amendments to bank facility agreement
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,
announces that the Group has amended its bank facility agreement,
with the following revised financial covenants:
Covenant Test Maximum Net Leverage Minimum Interest
Date Ratio(1) Cover Ratio(2)
--------------- ----------------------- -------------------
Amended Previous Amended Previous
--------------- ---------- ----------- -------- ---------
30 June 2017 5.5 5.0 3.0 3.0
--------------- ---------- ----------- -------- ---------
31 December
2017 6.5 5.0 2.5 3.0
--------------- ---------- ----------- -------- ---------
30 June 2018 6.5 5.0 2.5 3.0
--------------- ---------- ----------- -------- ---------
31 December
2018 5.0 4.0 3.0 3.0
--------------- ---------- ----------- -------- ---------
30 June 2019
onwards 4.0 4.0 3.0 3.0
--------------- ---------- ----------- -------- ---------
Certain restrictions would be applied on dividend payments and
capital expenditure should the net leverage ratio be above
specified levels.
Duncan Anderson, Chief Executive Officer of GMS, said:
"We are pleased to have the support of our banking syndicate and
appreciate its confidence in our business. The covenant amendments
provide us with the operational and financial flexibility to focus
on executing our strategic plan and delivering significant
efficiencies for our clients."
This announcement contains inside information.
John Brown
Company Secretary (responsible for arranging the release of this
announcement)
Gulf Marine Services PLC
9 August 2017
(1) Net Leverage Ratio: the ratio of net debt (bank borrowings
less cash), to EBITDA for the previous twelve months.
(2) Interest Cover Ratio: the ratio of EBITDA to net finance
charges for the previous twelve months.
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 14 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.
Gulf Marine Services PLC's Legal Entity Identifier is
213800IGS2QE89SAJF77
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
AGRDMGGRRRGGNZM
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