REG - Gulf Marine Services - Revised Guidance

Gulf Marine ServicesAnnouncement

17/01/2024 07:00

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RNS Number : 8827Z  Gulf Marine Services PLC  17 January 2024

January 17(th) 2024

 

 

Gulf Marine Services PLC

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

 

Revising guidance on the back of stronger utilisation

 

 

Gulf Marine Services (GMS), a leading provider of self-propelled and
self-elevating support vessels for the offshore oil, gas, and renewables
sectors, is pleased to announce it now anticipates adjusted EBITDA to be
approx. US$86m (previously: US$83m to US$86m) for the 12 months ended December
2023 and reconfirms its adjusted EBITDA guidance for the 12 months ending
December 2024 at US$87m to US$95m. We also target adjusted EBITDA in the range
of US$92m to US$100m for 2025.

 

Mansour Al Alami, GMS Executive Chairman, expressed his enthusiasm, stating:

 

"Our vessels and services continue to experience robust demand, and we
anticipate favourable conditions persisting in the foreseeable future. We
achieved a utilization of 94% in 2023, our daily chartered rates averaged at
US$30.2k and we ended the year with a backlog of US$315m. As we proceed with
our prudent deleveraging efforts to shift value from lenders to shareholders,
we are also initiating plans to reward our shareholders. Recently approved by
the Board, our residual dividend policy aims to strike a balance between
funding growth initiatives and providing returns to shareholders. Management
is currently assessing the timing for its implementation, a consideration that
was not on the table until recently."

 

GMS Chief Financial Officer, Alex Aclimandos, added:

 

"In order to enhance transparency and keep our investors more informed about
GMS's actual performance, we will commence quarterly publication of our
results starting in the second half of 2024."

 

"EBITDA growth continues to make a positive contribution to our deleveraging
journey. We now expect to end 2023 with a Net Leverage Ratio* in the range of
3.05 to 3.15:1. For 2024, we expect to reach by year end a Net Leverage Ratio*
in the range of 2.3 to 2.7:1. For perspective, this compares to a Net Leverage
Ratio* of 8.1:1 at the end of 2020, 5.8:1 at the end of 2021 and 4.4:1 at the
end of 2022."

 

 

(*) Net Leverage Ratio represents the ratio of net bank debt to Adjusted
EBITDA (with Adjusted EBITDA being operating profit after adding back
depreciation, amortisation, non-operational items and impairment charges.)

-ENDS-

 

 

 

 Enquiries:                 Tel: +44 (0)20 7603 1515

Gulf Marine Services PLC

 Mansour Al Alami

 Executive Chairman
 Celicourt Communications   Tel: +44 (0)20 7770 6424

 Mark Antelme

 Philip Dennis

 Ali AlQahtani

 

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. 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.gmsplc.com

Disclaimer

 

All forward-looking statements included in this announcement carry significant
risks and actual results can materially differ. Gulf Marine Services PLC
assumes no liability whatsoever in relation to confirm these forward-looking
statements.

 

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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