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(Alliance News) - Gulf Marine Services PLC on Wednesday cut earnings guidance and announced the departure of its chief executive.
Shares in Gulf Marine were down 6.7% at 8.40 pence in morning trade in London.
The company provides support vehicles for the offshore oil, gas and renewable energy sectors and is already in the process of replacing "all but the most recently appointed non-executive directors".
This includes the recent appointment of new Chief Financial Officer Stephen Kersley, a former CFO of energy and environmental waste company Tervita Corp, who joined on June 9 as a replacement for John Brown.
CEO Duncan Anderson has resigned with immediate effect but will be available to help with the handover.
Non-Executive Chair Tim Summers will become interim executive chair while Gulf Marine seeks a replacement for Anderson. Summers joined Gulf Marine in March 2019 from private oil and gas company New Age Ltd.
Following a review, Gulf Marine has reduced earnings guidance for 2019. The company had previously expected 2019 trading to align with 2018 but this is no longer the case, and it now expects earnings before interest, depreciation, taxation, and amortisation to fall year-on-year.
Ebitda for 2019 is now predicted to be below 2018 at between USD45 million and USD48 million, having been USD58 million in 2018.
The company also confirmed it will breach its banking covenant at the upcoming testing date. Gulf Marine is currently in talks with its banking syndicate and lenders in the hope of securing a waiver or amendment to covenants and create a "long-term sustainable capital structure".
Summers said: "Whilst we are disappointed to reset guidance for 2019, GMS's underlying business remains sound, and the new board recognises the importance of building a track record of delivery for our shareholders.
"GMS has progressed significantly towards our objectives of governance, management, and cost improvements, and we continue to be in constructive negotiations with our banks on a new capital structure for the company."
