GMS lands two new contracts with high hopes for future rates and fleet utilisation

GMS lands two new contracts, spurring its hopes for higher rates and fleet utilisation

Gulf Marine Services (GMS), a provider of self-propelled, self-elevating support vessels for the offshore oil, gas and renewables industries, has won two new contracts for two of its large-size class vessels and expressed expectations of higher rates and improved fleet utilisation in the future. 

GMS Evolution vessel (for illustration purposes); Source: GMS

GMS reported on Tuesday that the new contracts were both for E Class vessels. The new awards include a six-month contract with extension options for a renewables client in North-West Europe, which is expected to start in the summer of 2022. This vessel is currently stationed in the North Sea.

The other award is for a shorter term of five months with additional extension options. This contract is with one of GMS’s NOC clients in the Middle East and North Africa (MENA) region. The vessel hired for this contract is based in the region and the new contract will start before the end of 2021.   

Mansour Al Alami, GMS Executive Chairman, remarked: “GMS has had a solid year, delivering on expectations, including reporting a profit for the first time since 2016.  Our markets continue to improve with day rates on recent contract awards showing healthy increases from legacy contracts, which positions the company well for 2022 and beyond.”

The company expects to end 2021 with vessel utilisation at 85 per cent. GMS confirmed the previous EBITDA guidance remains unchanged.

“Given the strong pipeline of opportunities, combined with limited capacity in the market, we fully expect day rates and utilisation to improve further throughout next year,” concluded Al Alami.

GMS has been awarded several contracts in the past few months, which fuel the firm’s hopes for better rates and financial rewards in the future. In October, GMS won a new contract and an extension for one of its large-size class vessels and for one of its mid-size class vessels.

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Last month, the company also secured two contract extensions with increased day rates for its small-size class and mid-size class vessels.