GMS – Interim results for the six months ended 30 June 2022

Gulf Marine Services PLC (‘Gulf Marine Services’, ‘GMS’, ‘the Company’ or ‘the Group’)

Interim results for the six months ended 30 June 2022

GMS, a leading provider of advanced self-propelled, self-elevating support vessels serving the offshore oil, gas and renewables industries, is pleased to announce its Interim Results for the six months ended 30 June 2022 (H1 2022).

Overview 

H1 Highlights

• EBITDA guidance for 2022 remains at US$ 70 – 80 million

o  forecasted utilisation of 86% for H2 which supports the 2022 EBITDA guidance

• H1 2022 revenue increased by 29% to US$ 66.4 million (H1 2021: US$ 51.4 million), driven by

o  increased utilisation for H1 2022 to 89% (H1 2021: 77%) with notable improvements in E-Class vessels at 87% (H1 2021: 57%)

o  increased H1 2022 average day rates to $27.2k (H1 2021: US$ 25.5k)

• H1 2022 EBITDA increased to US$ 37.3 million (H1 2021: US$ 26.5 million) due to an increase in revenue and a continued focus on costs savings
• H1 2022 Net profit after tax was US$ 13.1 million (H1 2021 US$ 2.0 million) mainly driven by an increase in revenue. Gross profit margin improved to 41% (H1 2021: 32%)
• Net debt¹ reduced by US$ 29.9 million to US$ 341.4 million (31 December 2021: US$ 371.3 million) as the Group continues its focus on deleveraging

Outlook

• As demand in the market continues to grow, the Group anticipates improvements in day rates and utilisation, albeit at a slower pace than originally envisaged
• Secured backlog was US$ 163.3 million at 30 June 2022 (30 June 2021: US$ 215.4 million), which reflects the unwinding of long term contracts commenced prior to 2021 and partially offset by additional contract awards announced over the last 12 months
• Contract awards announced in H1 2022 have a combined total charter period of 2.6 years (H1 2021: 3.4 years), the Group is currently working on new potential contracts to improve the backlog

¹ This represents an Adjusted Performance Measure (APM) as defined in the Glossary which is included in Note 23 to the interim consolidated Financial Statements.

Mansour Al Alami, Executive Chairman, GMS said:

“I am pleased to report GMS operational results for first half of the year which provides us a solid platform for achieving our full year EBITDA guidance. The first half performance reflected higher day rates, improved utilisation and efforts made on continuous cost savings. We will realise the benefits of improved day rates on new contract awards announced during H1 2022.  As the Middle Eastern market continues to increase production, we expect an increase in demand for our sector, which in turn will lead to an increase in day rates and utilisation over time.”

Alex Aclimandos Chief Financial Officer Gulf Marine Services PLC 23 September 2022