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(Alliance News) - Gulf Marine Services PLC on Thursday guided for earnings to be at the top end of expectations after making double the cost savings it had expected.
Gulf Marine provides self-propelled self-elevating support vessels, know as jackup barges, to oil & gas and renewable energy firms.
Gulf Marine has guided for earnings before interest, tax, depreciation, and amortisation for 2019 of USD48 million to USD50 million. It now expects the figure closer to the top end of that range.
This reflects the fact Gulf Marine has made over USD12 million of annualised savings during the year, against a target of USD6 million.
This is the second time of late that the firm has provided positive Ebitda guidance. The USD48 million to USD50 million range was set in November, compared to prior guidance of USD45 million to USD48 million. A figure of USD50 million in 2019 would mean a 14% reduction in Ebitda year-on-year, however.
However, prior to August, Gulf Marine had expected 2019 Ebitda to come in at roughly the same level as 2018. Adjusted Ebitda in 2018 was GBB58 million.
Gulf Marine has been grappling with difficult trading conditions in its core market, and earlier in the year had to deal with a shareholder demanding leadership changes.
During 2019, Gulf Marine has seen the departures of its chief executive and chief financial officer positions, as well as several non-executive changes.
"The last twelve months have been a challenging period for Gulf Marine. However, comprehensive changes to the board and the senior management have delivered a significant change in our corporate culture, with a focus on financial and commercial success," said Executive Chair Tim Summers.
"Our contract wins through the autumn show Gulf Marine is rebuilding confidence in our ability to deliver in a competitive environment, and we face 2020 from a much stronger position than 12 months ago."
Shares in the company were 1.8% higher on Thursday at a price of 7.74 pence each, around a third of where they were last February.
By George Collard; georgecollard@alliancenews.com
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