TIDMGMS
RNS Number : 3442T
Gulf Marine Services PLC
14 November 2019
14 November 2019
Gulf Marine Services PLC
('Gulf Marine Services', 'GMS', 'the Company' or 'the
Group')
Trading Update
Following the recent successful contract awards, as well as
continued progress on optimising and reducing the cost base, GMS
announces an update and improvement to the EBITDA Guidance for
2019, previously declared as $45-48m. The new EBITDA Guidance for
2019 is in the range $48-50m.
Focus on optimising G&A spend continues, with a reduced
operational footprint, a simplification of the organisation and
streamlining of the structure at senior levels.
The end of year run-rate for G&A will be approximately 12%
of 2019 revenue, representing a reduction in annualised G&A
costs of around one-quarter since 2018.
This organisational simplification, along with optimisation of
third-party spend, has resulted in the recent target of $8.5m of
annualised savings being improved with the new target now set at
$10m. This compares to the original target of $6m, set earlier in
the year.
As previously announced, discussions with Lenders continue in a
constructive manner in pursuit of a sustainable long-term solution
to the balance sheet.
Tim Summers, Executive Chairman, commented:
"With new Leadership, GMS is clearly focused on building a track
record of delivery for all stakeholders, and the recent contract
awards, along with the progress on costs and improvement in
operational practices, has provided much needed momentum to the
business. Activity across the sector is increasing, and we are
committed to building a flexible and cost-effective service for our
customers."
- Ends -
Enquiries
For further information please contact:
Brunswick
Gulf Marine Services Patrick Handley - UK
PLC Will Medvei - UK
Tim Summers Tel: +44 (0) 20 7404 5959
Executive Chairman Jade Mamarbachi - UAE
Tony Hunter Tel: +971 (0) 50 600 3829
Company Secretary
Tel: +44 (0) 207 603
1515
Anne Toomey
Investor Relations
Tel: +44 (0) 1296 622736
Notes to Editors:
Gulf Marine Services PLC, a company listed on the London Stock
Exchange, was founded in Abu Dhabi in 1977 and has become a world
leading provider of advanced self-propelled self-elevating support
vessels (SESVs). The fleet serves the oil, gas and renewable energy
industries from its offices in the United Arab Emirates, Saudi
Arabia and the United Kingdom. The Group's assets are capable of
serving clients' requirements across the globe, including those in
the Middle East, South East Asia, West Africa, North America, the
Gulf of Mexico and Europe.
The GMS fleet of 13 SESVs is amongst the youngest in the
industry, with an average age of eight years. The vessels support
GMS's 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 categorised by size - K-Class (Small), S-Class
(Mid) and E-Class (Large) - with these capable of operating in
water depths of 45m to 80m depending on leg length. The vessels are
four-legged 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 (for up to 300 people) that can be adapted
to the requirements of the Group's clients.
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 news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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