Source - LSE Regulatory
RNS Number : 6359V
Gulf Marine Services PLC
15 April 2021
 

 15 April 2021

 

 

 

Gulf Marine Services PLC

 

('Gulf Marine Services', 'GMS', 'the Company' or 'the Group')

2020 Financial Results Release Date &

Trading Update

 

 

GMS, a leading provider of advanced self-propelled, self-elevating support vessels serving the offshore oil, gas and renewables industries, is pleased to announce it has secured two additional short-term contracts for its E-Class large vessels, in the MENA and North West Europe regions.

 

In advance of announcing its Final Results, scheduled for the week commencing 3 May, the Company is also pleased to confirm headline financial numbers for the year to 31 December 2020, in-line with the guidance provided in the March Trading Update, and that underlying trading in the current year continues to remain strong and in-line with the business plan.  
 

2020 Financial Highlights, subject to final audit:

 

·      Revenue: $102m

·      Adjusted EBITDA: $50m

·      Net Debt: $405m

 

 Trading Update

 

GMS is pleased to announce that it has secured two additional short-term contracts for its larger E-Class vessels, with an EPC client in the MENA region and a Windfarm Developer in North West Europe. Commencing in Q2 2021, the combined contracts will run for a period of seven months.

 

Including these additional contract wins, current backlog stands at $207m, with revenue of $112m and 78% utilisation now secured for 2021 (firm and options). This reflects the Company's continued commitment to maximise value from its assets, combined with positive momentum in its core markets.

 

The high level of work secured to date and a strong pipeline of tendering activity, gives the Board increased confidence in the outlook for the current year, with the potential for an improved EBITDA performance, underpinned by solid utilisation, ongoing management of costs and the potential for improving day rates in the second half of 2021.

 

 

Mansour Al Alami, GMS Executive Chairman, said:

 

"GMS is continuing to return to a position of strength. In addition to recently securing a debt deal, on significantly improved terms, that creates a platform for the Company's future growth, we are maximising the return on our assets, through improving utilisation and a reduced cost base, which is expected to lead to an improvement in EBITDA. In the medium and longer term, GMS is also likely to benefit from the recovery in the oil & gas sector, and a strengthening of the renewable energy market in Europe."

 

 

-ENDS-

 

 

Enquiries:

Gulf Marine Services PLC

Mansour Al Alami

Executive Chairman
 

Tel: +44 (0)20 7603 1515

Celicourt Communications

Mark Antelme

Philip Dennis

Tel: +44 (0) 207 520 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.
 

Evolution Cantilever Capability

GMS Evolution and her cantilever work over system has been designed and built to enable heavier work over scopes from a self-propelled jack up barge. The optimised design enables execution of Heavy Well Intervention (HWI) benefitting from the efficiencies of our 4-Legged self-propelled jack up barges provide. The type of HWI work that can be carried out include:
 

Electrical Submersible Pump (ESP) change out

·      Plug and abandonment:

·      Re-completion

·      Side-tracks

·      Slot Recovery

·      Work Overs

·      Coil Tubing

 

And the benefits include:
 

·      Significant time savings moving between locations resulting in workover programmes being completed significantly quicker therefore allowing clients to maximise production levels

·      No requirement to hire tugs to assist with drilling rig moves

 

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.

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