Gulf Marine Services has secured more work and says it sees an uptick in demand for its self-propelled self-elevating support vessels (SESVs).
“…The Group is pleased to announce a three-year contract award for one of its K-Class vessels in the MENA region. In addition, a six-month extension has been exercised for an S-Class vessel, and a further four-month extension for a K-Class vessel,” UAE-based GMS said in a trading update on Tuesday.
The company has said that the secured backlog now stands at $218.9 million. The number also presumes the options available to customers will be extended.
Providing its take on the market environment, GMS said: “Customer inquiries are strengthening in the Middle East, with opportunities for the GMS fleet emerging in all of the Group’s principal markets in the region (UAE, Saudi Arabia, and Qatar),”
GMS, which owns a fleet of 13 SESVs serving the offshore oil & gas and offshore wind industries, said the utilization of the fleet has remained stable in Q1 2019 at a rate – including time for new contract mobilizations – of 72%.
Duncan Anderson, Chief Executive Officer of GMS, said: “Underlying activity in the market is encouraging, with an improving pipeline of opportunities for the GMS fleet. We are participating in both short and long-term contract tenders and remain focused on the effective deployment of our vessels at appropriate operating margins.”
The Group’s net debt level was unchanged (being bank borrowings less cash) at May 1, 2019, at US$ 400.4 million.
GMS has said it is making cost savings across the business, and the company is on track to deliver the $6 million target of annualized savings by 2020.
“The Group continues to engage in a constructive dialogue with its banking syndicate to deliver a refinancing solution that establishes an appropriate long-term sustainable capital structure,” GMS said.
Offshore Energy Today Staff
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