Gulf Marine Services lifts forecasts after solid third quarter

(Sharecast News) - Gulf Marine Services, a provider of self-propelled, self-elevating support vessels for the offshore oil, gas, and renewables sectors, revised its adjusted EBITDA guidance on Monday after reporting solid growth through the third quarter.

The London-listed company said revenue for the nine months ended 30 September reached $126.1m, an 11% increase compared to the same period in 2023, driven by higher average daily rates of $32,800, up from $30,300 in the prior year.

It said the improvement was partially offset by a decline in vessel utilisation, which dropped to 92% from 94%, primarily due to maintenance and drydocking activities.

Gross profit rose by 14% to $61.8m, while adjusted EBITDA increased 12% to $76.1m, maintaining a 60% EBITDA margin.

The firm reported a significant reduction in net debt, which fell by 21% to $221m, resulting in a lower net leverage ratio of 2.3:1, down from 3.05:1 at the end of 2023.

GMS attributed that to its continued deleveraging efforts, including additional debt repayments beyond contractual obligations.

Finance expenses decreased to $17.9m, driven by lower gross debt levels and reduced interest rates as the company achieved a lower leverage ratio.

GMS raised its adjusted EBITDA guidance for 2024, projecting a range of $96m to $101m.

The company also noted that it was revisiting its 2025 adjusted EBITDA outlook.

It said it was committed to further deleveraging in 2025, with demand in the market staying strong due to high activity levels and limited vessel availability.

The company's secured backlog increased to $505m as of 10 October, up from $465.5m at the end of September.

That growth was put down to new contract awards over the past year.

GMS also reported the exercise of 34.2 million warrants, resulting in the issuance of 53.5 million shares, with further warrant exercises possible up to June 2025.

Additionally, GMS said it was progressing with preparations for new financing facility documentation, which was expected to be completed by the end of the year.

"I am delighted to see the results achieved as well as the plans moving forward adding value to the shareholders of the company," said chief financial officer Alex Aclimandos.

"The solid fundamentals of the business are confirmed day after day and so is our ability to transition GMS into an agile company serving offshore activities for oil and gas as well as windfarms customers worldwide."

At 0909 GMT, shares in Gulf Marine Services were up 3.52% at 19.1p.

Reporting by Josh White for Sharecast.com.