GMS inks new vessel deals as market tightens

Gulf Marine Services (GMS), a provider of self-propelled, self-elevating support vessels for the offshore oil, gas and renewables industries, has won a new contract for one of its large-size class vessels and a contract extension for one of its mid-size class vessels.

Endeavour (for illustration purposes); Source: GMS

GMS reported on Thursday that the 12-month contract was due to start at the end of December 2021, following the completion of the vessel’s existing contract. The contract is for an E Class vessel with an EPC customer in the Middle East and North Africa (MENA) region.

Furthermore, GMS confirmed that a NOC customer had decided to exercise its extension option for an S Class Vessel. Therefore, a two-year extension option has been exercised for an existing contract, committing the vessel until the end of 2023.

Mansour Al Alami, GMS Executive Chairman, commented: “The award of these two contracts, one of which at a significantly higher rate than its current contract, reinforce the point that we are seeing a tightening of the market and demand for our vessels continues to improve.”

The GMS fleet consists of 13 SESVs, which are categorised by size – K-Class (Small), S-Class (Mid), and E-Class (Large).

“These awards, together with other contracts already secured for 2022 and a strong pipeline of additional opportunities, increases our confidence that the financial performance of the company will see further improvement into next year,” added Al Alami.

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In June this year, all 13 vessels in the GMS fleet were under contract following the award of three new contracts with a combined duration of 31 months.