RNS Number : 6107N
Gulf Marine Services PLC
01 October 2021
1 October 2021
Gulf Marine Services PLC
('Gulf Marine Services', 'GMS', 'the Company' or 'the
2021 Interim Financial Results Release Date &
GMS, a leading provider of advanced self-propelled,
self-elevating support vessels serving the offshore oil, gas and
renewables industries, is pleased to confirm that it will be
releasing its 2021 interim financial results the week commencing 11
October 2021 and that the underlying trading performance of the
business remains in line with management expectations.
H1 2021 Highlights
-- H1 revenue increased 3% to US$ 51.4 million (H1 2020: US$ 49.8 million).
-- H1 EBITDA increased by 16% to US$ 26.5 million (H1 2020: US$
22.9 million) with EBITDA margin increasing to 52% (H1 2020:
-- G&A administrative expenses reduced to US$ 4.9million (H1 2020: US$ 6.6million).
-- EBITDA 2021 guidance of US$ 63-67 million underpinned by
secured utilisation of 92% in second half
-- Significant reduction in interest costs in 2021 / 22 through new bank deal.
-- Net debt(1) reduction to $376m supported by successful US$ 27.8m equity raise in June 2021.
-- 7 contract awards announced in 2021, with a combined total charter period of 3.4 years.
-- A return to profitability, the first time since 2016.
-- Secured backlog is US$ 215.4 million as at 30 June 2021, (H1 2020 US$ 238.6 million).
-- Strong pipeline of long-term contracts currently being tendered.
The improvement in GMS's secured utilisation, coupled with the
overall improvement in utilisation experienced in the wider market,
is leading to a reduction in the oversupply of vessels that we have
seen in recent years. We believe this positions the Company well to
benefit from an improvement on day rates, as contracts from our
strong pipeline of current tender opportunities are awarded.
Market demand is being supported by commodity prices, driving
renewed interest in capex work, combined with ongoing maintenance
activity. It is also being driven by windfarm installation and
maintenance, particularly in China, which is drawing capacity away
from regional markets, including our own. In the Middle East, there
appears to be no new capacity coming into the market, with
constraints being driven by legacy issues resulting from the
downturn in the commodity cycle, which we are now coming out
We expect costs incurred to date as a result of COVID-19 to
reduce as governments ease quarantine requirements and border
restrictions allowing our crews to join vessels more
The high level of revenue already secured for the remainder of
2021 is expected to drive a significant improvement to the H1 2021
EBITDA, underpinning GMS's Full Year EBITDA guidance of US$ 63-67
Mansour Al Alami, Executive Chairman, GMS said:
"This solid performance in the first half, combined with higher
rates of utilisation already secured to date, give us confidence
for the remainder of the year. The first half performance is a
reflection of legacy contracts. As we progress into the second half
of the year and beyond, these contracts will increasingly unwind
and we will realise the benefits of improved dayrates achieved on
more recently awarded contracts that better reflect the improved
market conditions. This, combined with our continued focus on
operational efficiency, on costs and the benefits of the new debt
deal and equity raise, is expected to drive an improved performance
in the second half and beyond and support the accelerated
deleveraging of the company's balance sheet."
(1) Net Debt is total bank borrowings less cash
Enquiries: Tel: +44 (0)20 7603
Gulf Marine Services
Mansour Al Alami
Celicourt Communications Tel: +44 (0) 207
Mark Antelme 520 9263
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 Qatar. 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
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October 01, 2021 02:00 ET (06:00 GMT)
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