Gulf Marine sings new contract, upgrades expectations

12th Sep 2024 11:45

(Sharecast News) - Gulf Marine Services (GMS) announced on Thursday that it has secured a new long-term contract for one of its vessels operating in the Gulf Cooperation Council (GCC) region, marking a significant boost for the company.

The London-listed firm said the contract, which would span five years including optional extensions, further strengthened its position in the offshore energy sector.

It said the new deal also contributed to improved average day rates across its fleet, and brought its total backlog to $464m.

In light of the new contract and stronger-than-expected performance, GMS revised its adjusted EBITDA guidance for 2024, raising the lower end of its forecast.

The company said it now expected adjusted EBITDA to fall between $95m and $100m, up from its previous guidance of $92m to $100m.

"We are pleased to secure this new long-term contract with one of our key regional clients," said executive chairman Mansour Al Alami.

"This award reinforces the continued high demand for our vessels and reflects the strong utilisation of our fleet in the region.

"We remain committed to supporting our client's projects and delivering high-quality services across the GCC.

"The revised EBITDA guidance for 2024 reflects the favourable market conditions."

At 1126 BST, shares in Gulf Marine Services were up 9.8% at 17.02p.

Reporting by Josh White for Sharecast.com.