Gulf Marine Services secures new long-term contract in Europe

Gulf Marine Services announced a new long-term contract in Europe on Thursday and the extension of two existing contracts in the Middle East, adding a total of 25 months to the backlog, inclusive of optional extensions.

The current backlog totals $505m, representing 3.3x 2023 revenue and a circa 18% increase over that announced at the half year end on 30 June.

The company - which provides self-propelled and self-elevating support vessels for the offshore energy sector - said the strength of market demand is allowing it to meet its deleveraging goal quicker than anticipated.

Executive chairman Mansour Al Alami said: "We are delighted to have been awarded this long-term contract to strengthen our footprint in the European offshore wind sector, marking a pivotal moment for GMS. This contract not only underscores the strong demand for our versatile fleet but also reaffirms GMS's vital role in driving forward Europe's transition to clean energy through offshore wind development. We are also happy with the extensions obtained on two vessels as it confirms the strength of the demand in the market.

"Market fundamentals are steadily improving, allowing us to meet our deleveraging goals faster than expected. As of the end of September, our net debt has decreased to $221 million, down from $267 million at the start of the year and $238.5 million at the end of June.

"Our ability to deliver innovative and cost-effective solutions is a testament to the strength of our operational excellence and the trust our clients place in us. As we look to the future, GMS remains fully committed to supporting Europe's renewable energy goals while continuing to enhance our performance and deliver sustainable value for all stakeholders."

At 0915 BST, the shares were up 6.2% at 16.51p.