Interim Management Statement

RNS Number : 5348G

Gulf Marine Services PLC

08 May 2014

 



Gulf Marine Services PLC

For immediate release                                                                                               8 May 2014

Gulf Marine Services PLC

("Gulf Marine Services", "GMS" or "the Group")

INTERIM MANAGEMENT STATEMENT

Gulf Marine Services (LSE:GMS), the leading provider of self-propelled self-elevating support vessels  serving the offshore oil, gas and renewable energy sectors, today publishes its Interim Management Statement for the period 1 January to 7 May 2014.

Operations

We continue to see high demand for our services with a strong pipeline of opportunities. The Group has a very significant backlog (the order book at the end of March 2014 was $395 million comprising of firm and extension options) providing good visibility on future earnings. Current trading is in line with expectations.  

During Quarter 1, the Group achieved overall fleet utilisation of 95%. Against this background, a short-term oil and gas contract in the North Sea (3 month time period) for one of our Large size vessels was scheduled to commence in February 2014; although our vessel was ready, the customer delayed the start date and the work will now not proceed. In the meantime, we have redeployed the vessel on short term wind farm work which replaces the period initially envisaged. We are continuing to seek follow-on work for this vessel.  Opportunities for new contracts across the fleet remain buoyant, particularly in the Middle East, and the Group is optimistic that its business development activities will generate further new leads and work.

The new build programme remains on schedule and on budget. We achieved some key milestones within the period including the delivery in February of the hull for GMS Enterprise to our yard in Abu Dhabi, where it is currently being fitted out with completion scheduled for September. At the beginning of May we also commenced construction in China of the hull for our first Mid-Size vessel GMS Shamal.   

Financial Position

The Group has both a strong balance sheet and a robust cash generating position which provides a good platform for growth. The balance sheet was recently bolstered with equity capital through the successful Initial Public Offering (IPO) on 19 March 2014.  The IPO raised gross proceeds of approximately $110 million, which will be used to further advance the new build programme. As at the end of March 2014, the Group had net debt of $165 million (cash of $105 million, bank debt of $270 million) together with undrawn bank facilities of $130 million.

Duncan Anderson, Chief Executive Officer of GMS, commented:

"Following our successful IPO, we continue to see strong demand for our assets in brownfield oil and gas recovery, well services and maintenance. Our new build projects remain on schedule to meet extensive tender demand going forward which will further strengthen our long term order book in 2014 and 2015."

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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 one of the largest providers of self-propelled self-elevating support vessels (SESV) in the world. 

The fleet serves the oil, gas and renewable energy industries from its offices in the United Arab Emirates, Saudi Arabia, Singapore and the United Kingdom.  GMS is working worldwide, with its assets capable of serving clients' requirements in the Middle East, South East Asia, West Africa and Europe.

The Company's SESVs are four-legged vessels that move independently, with no requirement for anchor handling or tug support. They have a large deck space, crane capacity and accommodation facilities that can be adapted to the requirements of the Company's clients. These vessels support GMS' 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) and offshore oil and gas platform installation and offshore wind turbine installation (which are Capex-led activities).

GMS' fleet of SESVs is technically advanced and amongst the youngest in the industry, with an average age of nine years. The fleet is categorised by size into Large vessels and Small vessels with a third class, the Mid-Size vessel, to be added in 2015. GMS plans to add up to six more vessels to its fleet over the next three years as the Company continues to target long term client contracts and to pursue strategies to expand its market positions.

Demand for GMS' vessels is predominantly driven by their premium capabilities as well as market growth underpinned by the need to maintain ageing oil and gas infrastructure and increasing use of enhanced oil recovery techniques to offset declining production profiles.

www.gmsuae.com 

Enquiries:

Gulf Marine Services PLC				Tel: [phone]
John Brown - Group CFO
Anne Toomey - Head of Communications and Investor Relations Executive
Jonathan Gallagher - Corporate Finance Manager
Gulf Marine Services
Mussafah Base,
P.O.Box 46046,
Abu Dhabi,
UAE
PR
Bell Pottinger (London)				Tel: [phone]
Philip Dennis
Rollo Crichton-Stuart

 

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