Gulf Marine Services annual profits grow, FY24 outlook strong

Energy industry services business Gulf Marine Services said on Thursday that both revenue and profits had grown in 2023.

Gulf Marine said revenue grew 14% to $151.5m last year, driven by higher day rates and the improved popularity of its E-class and K-class barges, while net profits jumped 66% to $42.1m. Fleet use rose 6% year-on-year, allowing the firm to raise average day rates from $27,500 to $30,3000.

The London-listed firm also lowered net debt from $315.8m to $267.3m, bringing its leverage ratio down from 4.4x to 3.05x and cutting its administrative cost base as a percentage of revenue. However, GMS' finance expenses rose from $7.8m to $33.4m due to higher LIBOR and interest rates.

Chairman Mansour Al Alami said: "In 2023 our business thrived amid industry tailwinds, showcasing year-over-year growth in revenues, utilisation and day rates.”

"We continue our deleveraging journey, as we spare no efforts to continue to increase shareholder value."

Looking forward, Gulf Marine, which struck a highly profitable two-phase deal last month that took its backlog to $463.0m, said it has a target capacity of 95%, of which it claims 83% has already been confirmed.

As of 1150 BST, Gulf Marine Services shares were up 7.66% at 21.16p.

Reporting by Iain Gilbert at Sharecast.com