Gulf Marine Services Regulatory News (GMS)

28 July 2014

Gulf Marine Services PLC

("Gulf Marine Services", "GMS" or "the Group")

GMS CONFIRMS CONTRACT EXTENSIONS

FOR TWO SESV VESSELS IN THE MENA REGION

Gulf Marine Services (LSE:GMS), the leading provider of self-propelled self-elevating support vessels (SESV) serving the offshore oil, gas and renewable energy sectors, is pleased to confirm that contract extensions have been exercised for two of its Small Class vessels in the MENA region.

The first extension is for an SESV currently chartered to a MENA-based national oil company (NOC) on a three-year contract (two years firm and an option to extend by one year). The option to extend the contract for a further year has been exercised effective from Q3 2014. The vessel will continue supporting well service work for the client.

The second extension is for an SESV currently chartered to a MENA-based NOC on a five-year contract (two years firm and three 12-month options). It is confirmed that the second 12-month option has been exercised effective from Q4 2014. This vessel is again supporting well service work.

There is no change to the day rates for both vessels for the extension periods.

Duncan Anderson, Chief Executive Officer of GMS, said: 

"Confirmation of these two contract extensions is further testament to the strong and long-standing relationships we have with our clients in the Middle East. The order book for our entire fleet continues to be very healthy, with our assets all currently on contracts to support brownfield oil and gas recovery, well services and maintenance work in the MENA region and North West Europe."

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Notes to Editors:

Gulf Marine Services PLC, a company listed on the London Stock Exchange, was founded in Abu Dhabi in 1977 and has become one of the largest providers of self-propelled self-elevating support vessels (SESV) in the world. The fleet serves the oil, gas and renewable energy industries from its offices in the United Arab Emirates, Saudi Arabia and the United Kingdom. GMS is working worldwide, with its assets capable of serving clients' requirements in the Middle East, South East Asia, West Africa and Europe.

The Group's SESVs are four-legged vessels that move independently, with no requirement for anchor handling or tug support. They have a large deck space, crane capacity and accommodation facilities that can be adapted to the requirements of the Group's clients. These vessels support GMS' clients in a broad range of offshore oil and gas platform refurbishment and maintenance activities, well intervention work and offshore wind turbine maintenance work (which are Opex-led activities) and offshore oil and gas platform installation and offshore wind turbine installation (which are Capex-led activities).

GMS' current fleet of nine SESVs is technically advanced and amongst the youngest in the industry, with an average age of nine years. The fleet is categorised by size into Large Class vessels (operating in water depth of up to 80m, with crane capacity of up to 400 tonnes and accommodation for up to 300 people) and Small Class vessels (operating in water depth of up to 45m, with crane capacity of up to 45 tonnes and accommodation for up to 300 people). A third class, the Mid-Size Class vessels (operating in water depth up to 55m, with crane capacity of up to 150 tonnes and accommodation for up to 300 people) will be added to the fleet in 2015.

GMS plans to add up to six more vessels to its fleet over the next three years as the Group responds to anticipated strong customer demand and a growing market in the foreseeable future.

Demand for GMS' vessels is predominantly driven by their premium capabilities as well as market growth underpinned by the need to maintain ageing oil and gas infrastructure and increasing use of enhanced oil recovery techniques to offset declining production profiles.

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