LONDON (Alliance News) - Gulf Marine Services PLC on Wednesday said trading is currently meeting expectations as the company implemented cost-reduction measures to help adjust the business to suit current market conditions within the oil and gas segment.
The company did not provide much of an update on Wednesday, stating trading is in line with its previous guidance as it focuses on maximising the utilisation of its fleet. Gulf Marine said its fleet utilisation rate averaged 93% in the first quarter of the year.
The company's secured backlog at the start of May stood at USD413.1 million. Importantly, USD179.8 million of that backlog is made up of firm orders whilst the other USD233.3 million is optional work, meaning it is not guaranteed and could be cancelled in the future.
Gulf Marine said it does not plan to further increase the size of its fleet after chartering its latest vessel, SEVS GMS Sharqi, to the Middle East for a two-month period. The company also will add another vessel, GMS Evolution, in the fourth quarter of this year and that will be the last new vessel to be added to the company's fleet for the foreseeable future.
Net debt at the start of May stood at USD408.5 million, whilst undrawn bank facilities totalled USD200.0 million, providing the company with some financing headroom.
"The sustained low oil price continues to affect our industry and our focus remains on maximising vessel utilisation and maintaining our strong client relationships in the [Middle East and North Africa] region and Europe, while managing our costs appropriately," said Chief Executive Duncan Anderson.
Gulf Marine shares were down 0.5% to 47.50 pence per share on Wednesday morning.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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Gulf Marine Services (GMS)