Gulf Marine Services, the leading provider of self-propelled self-elevating support vessels serving the offshore oil, gas and renewable energy sectors, has published 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,” said the company.
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 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, said: “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.”