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(Alliance News) - Gulf Marine Services PLC has secured two additional seven month contracts for its larger vessels, it said on Thursday.
The contracts for two E-Class vessels will commence in the second quarter and will form part of a substantial pipeline of plannned work worth USD207 million.
Abu Dhabi-based GMS, which provides support vessels to the offshore energy industry, also announced it expects 2020 revenue of USD102 million, down 6.2% from USD108.7 million the previous year.
Expected adjusted earnings before interest, tax, depreciation and amortisation is seen declining to USD50 million, 2.7% lower than the USD51.4 million seen in 2019.
Despite the disappointing results GMS remained optimistic, pointing to a backlog of work worth USD207 million, with revenue of USD112 million and 78% utilisation already secured for 2021.
"Gulf Marine is continuing to return to a position of strength," said Executive Chair Mansour Al Alami.
"In addition to recently securing a debt deal on significantly improved terms, that creates a platform for the company's future growth, we are maximising the return on our assets through improving utilisation and a reduced cost base which is expected to lead to an improvement in earnings before interest, tax, depreciation and amortisation.
"In the medium and longer term, Gulf Marine is also likely to benefit from the recovery in the oil & gas sector, and a strengthening of the renewable energy market in Europe."
Gulf Marine shares were trading at 7.19 pence each in London on Thursday afternoon, up 3.7%%.
By Will Paige; willpaige@alliancenews.com
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