RE: Well well well8 Jan 2021 08:22
The outlook for European renewable work is promising, with a number of opportunities emerging as clients seek to secure vessels for projects in the longer-term.
Since the last market update, further vessels have been secured under contract, with total fleet contracted utilization already at 69% for 2021. As a comparison, at the same time in 2019, only 56% had been secured for 2020.
Progress continues on cost reduction, with annualized costs savings now standing at $18.5m with further opportunities for cost reduction identified. Nine-month 2020 G&A costs have been reduced by 30% compared to the same period in 2019, and onshore headcount has been reduced by 48% since early 2019.
The relocation of GMS from its outdated Musaffah base to new facilities within Abu Dhabi has been successfully completed. This move reduces the combined office & yard costs by around 40% annually from 4Q2020 onwards. Relocation costs have been more than covered by sales of equipment no longer required within the new footprint.
Nine-month 2020 adjusted EBITDA[1] delivery remains above Business Plan targets, an increase of 25% versus the comparative period in 2019. Year-to-dateNine-month 2020 adjusted EBITDA[2] margin (against the same period last year) has improved from 43% in 2019 to 59% - an increase of 36% - delivered despite the current challenging market conditions and restrictions due to COVID-19.
The Board once again reconfirms the previous 2020 guidance, originally issued in January, of $57-62 million adjusted EBITDA, with the expected outturn at the upper end of the range.
$220m order book and growing.
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