Gulf Marine Services

Contract

RNS Number : 5557D
Gulf Marine Services PLC
30 June 2021
 

 

 

30th June 2021

 

 

 

Gulf Marine Services PLC

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

 

Three New Contract Awards

 

 

GMS, a leading provider of advanced self-propelled, self-elevating support vessels serving the offshore oil, gas and renewables industries, is pleased to announce the award of three new contracts, with a combined duration of 31 months.

 

These include a 23-month contract for an E Class vessel in Qatar, commencing in early 2022, and two K Class vessel contracts totalling 8 months commencing in August 2021.

 

Combined these contract awards brings secured utilisation to 86% for 2021 and 50% for 2022 and orderbook (including options) increases to US $215m.

 

Mansour Al Alami GMS Executive Chairman said:

"These contract awards mean that all 13 vessels in our fleet are all under contract which is something we haven't seen since 2016 and is a very good indicator of an improving market. The 23-month contract award for the E-Class vessel was at rates significantly higher than we have seen in recent times and we would expect improvement in day rates to continue as the supply/demand dynamics improve in our favour.

 

The Company has seen a solid first half to the year and is well placed to see further improvement in the second half, which gives the Board added confidence that GMS remains on track to see a significant improvement in EBITDA going forward, with the bottom line turning positive after many years of continued losses.

 

The better capital structure now in place, post agreeing a much-improved deal with the Company's debt providers, combined with the success of the recent fundraise, further underpins the Company's future, supporting its ability to, over the next two years, significantly deleverage the balance sheet .

 

The Company's performance is underpinned by positive market conditions, supporting utilisation, contracted activity, the pipeline of opportunities and day rates. It is also supported by the actions taken by the Board to actively manage costs, improve operational efficiencies, and put in place an improved capital structure, which will benefit the Company's near and long-term prospects. Combined, this all serves to reset the GMS story, driving benefits for the Company, its employees, contractors, partners and investors."

 

 

-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) 208 434 2643

 

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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