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    GMS reports good start to 2015: fleet expansion programme on track

    Company News // August 26, 2015

    Gulf Marine Services says it has had a good start to 2015, with revenue up by 8 per cent to US$ 98.2 million (an 11 per cent increase on a constant currency basis), robust cashflows generated from operations, adjusted EBITDA up 2 per cent to US$ 60.1 million (a 7 per cent increase), adjusted net profit for the period of US$35.0 million. The company says it also has a healthy backlog of US$ 664.0 million as of 1 August 2015.

    The company said its fleet expansion programme is now more than half completed, and continues to be delivered on time and to budget. The three new vessels most recently commissioned have been immediately deployed to new contracts, and the company said it has "encouraging signs for a first charter for Mid-Size Class newbuild GMS Scirocco following delivery in the third quarter of 2015).

    The company said demand in the MENA region "remains particularly buoyant" and it sees the prospect of dividend growth to reflect the successful delivery of its fleet expansion programme.

    Duncan Anderson, Chief Executive Officer for GMS, commented: "The froup has delivered solid performance in the first half of the year, in accordance with the strategy we set out at the time of our IPO. We have maintained high fleet utilisation of 98 per cent with charter day rates in line with guidance. Our backlog remains healthy and its weighting towards Opex-related work gives us greater resilience to ride out the current challenges facing the industry.

    "We expect earnings to increase in the second half of 2015 now that two of our three newbuild vessels scheduled for this year have been delivered and because of the reduction in special projects and vessel modifications. Net income for the full year is expected to be broadly in line with expectations.

    "Looking further ahead, our remaining fleet expansion programme is progressing on time and to budget. We are keeping a watchful eye on the impact of the reduced oil price. Although day rates are subdued in Europe, activity levels in the MENA region remain buoyant.

    "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. As the period of capital investment associated with the current newbuild 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."

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