LONDON (Alliance News) - Gulf Marine Services PLC on Tuesday posted a solid set of results for the first half, with profit and revenue both higher and the group's fleet utilisation remaining strong, along with confidence that earnings will improve in the second half.
The company, which provides self-propelled self-elevating support vessels to the offshore energy sector, said its pretax profit for the six months to the end of June was USD36.1 million, up from USD34.3 million a year earlier, as revenue for the group increased to USD98.2 million from USD90.7 million.
Gulf Marine said its fleet utilisation in the half was 98%, with charter day rates in line with its guidance. The group said its fleet expansion programme is now more than half complete and is on time and on budget. The three new vessels it has commissioned most recently have been immediately deployed to new contracts.
The company added it would pay a flat interim dividend of 0.41 pence per share.
The group is anticipating a reduction in planned special projects in the second half of the year and, in addition to the new vessels which will be added to its fleet in the third quarter, expects an increase in total available days of more than 25% in the second half. More than 95% of its total available days for the second half have already been contracted, it said, and this should lead to a substantial rise in second half earnings.
"Given the group's continued success in winning contracts for the new vessels, we expect to see growth in our revenue earning capacity feeding through to the bottom line and dividend prospects in 2016 and thereafter," said Chief Executive Duncan Anderson.
"As the period of capital investment associated with the current new build programme concludes in 2016 and the group captures the earnings benefit from the enlarged fleet, the board will consider the appropriate dividend policy that balances the opportunities to invest to continue to grow the business with the potential for increased shareholder returns," Anderson added.
Gulf Marine shares were up 5.2% to 107.00 pence in early trade, one of the best performers in the FTSE All-Share.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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Gulf Marine Services (GMS)