Gulf Marine Services has maintained its full year guidance after a solid first half performance. Revenues were up 13% at $110.4m and EBITDA rose by 18% to $70.7m.
Adjusted net profit for the period rose 20% to US$ 41.9 million and adjusted earnings per share increased 21% to 12.00 cents.
Revenues and profits for the period were down on H2 2015 as the group continued to address the market downturn.
The group says it has taken steps to significantly reduce its cost base. Cost-cutting initiatives across the group have included efficiencies in its supply chain, crew costs and overhead base (primarily through reorganisation and rationalisation).
There is no change to previous guidance, with the group currently expecting 2016 EBITDA to be US$100m-110m, equivalent to an EBITDA margin in the high 50% range, with 2016 earnings per share of 14.5-15.5 cents anticipated.
Chief executive Duncan Anderson said: "The Group has delivered a solid performance in the first half in the face of challenging market conditions. Whilst we have taken significant actions to mitigate the impact of this market downturn, revenues and profits were lower than the second half of 2015.
"Looking ahead, the market outlook remains uncertain, mainly as a result of budgetary constraints applied by our clients that are leading to shorter term contracts. Tender opportunities continue in both the MENA region and Europe, notably for clients focused on production.
"The Group is successfully fulfilling a decommissioning contract in the North Sea and we believe that demand for our vessels in this sector will increase, particularly given our experience already gained in these activities
"Whilst we are working to maximise vessel utilisation, we continue to manage our cost base appropriately and take measures to ensure we are best placed to benefit from any market improvement. I remain confident that we are well-positioned to manage the current industry challenges with a modern fleet and an opex-focussed business model. Reflecting this confidence, the Board has approved an interim dividend of 0.41 pence (0.54 cents)"
At 8:16am: (LON:GMS) Gulf Marine Services PLC share price was +6.25p at 48.75p