LONDON (Alliance News) - Gulf Marine Services PLC said Monday it expects the turbulence within oil and gas markets to continue throughout 2016, which it says will put pressure on its margins.
The provider of self-propelled self-elevating support vessels said it expects 2016 earnings before interest, tax, depreciation and amortisation to be 15% to 20% lower than in 2015, and earnings per share to be 25% to 30% lower, as its clients seek to make cost savings, through lower charter rates and, in one instance, the early termination of an existing vessel contract.
Gulf Marine said it expects net debt to peak at around USD435.0 million during 2016, before reducing to around USD425.0 million by year-end with further deleveraging in 2017 following the completion of the build programme in 2016.
Gulf Marine said its focus over 2016 will be on maximising vessel utilitsation.
The company will post full year results on Tuesday, and said its 2015 performance had been broadly in line with expectations.
Shares in Gulf Marine were down 2.9% at 74.31 pence on Monday.
By Hannah Boland; hannahboland@alliancenews.com; @Hannaheboland
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Gulf Marine Services (GMS)