TIDMGMS
RNS Number : 9585N
Gulf Marine Services PLC
26 May 2020
NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR
INDIRECTLY, IN WHOLE OR IN PART IN, INTO OR FROM ANY JURISDICTION
WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OF
SUCH JURISDICTION
FOR IMMEDIATE RELEASE 26 May 2020
Gulf Marine Services PLC
New Contract Win and Trading Update
Gulf Marine Services PLC ("GMS" or the "Company") announces a
new contract award, and a trading update.
Contract Award
GMS announces the award of a seven-month contract (firm plus
options) for an E-Class (large) vessel. GMS will provide support
for offshore activities on behalf of a Middle East client. The
vessel will be mobilised for the start of operations during the
summer of 2020. GMS has also secured a two-month contract extension
of a K Class (small) vessel, also for a Middle Eastern based
client. This increases total GMS fleet utilisation to 82% for 2020.
The last time the GMS fleet operated at these levels of utilisation
was in 2015 on a calendar year basis.
Trading Update
Year to date performance remains ahead of the Business Plan,
with April actuals now in. The order book continues to be built,
and fleet utilisation for 2020 is now at 82% with a further 53% of
the fleet secure for 2021. Contract rates reflect current market
conditions and remain within our expectations.
Progress on costs continues with further reductions onshore and
offshore, where reductions of 6% in the offshore organisation
through crewing efficiencies have been achieved so far this year.
This is in addition to a 22% reduction in the onshore organisation
through headcount reductions achieved in the first quarter.
Onshore staff continue to work remotely, and no material
interruptions in the supply chain have been incurred. Of the two
vessels with reported COVID-19 cases, one has remobilised to the
field already following crew testing and deep-cleaning, and the
other is preparing to remobilise.
Guidance for 2020 ($57-62 million EBITDA), previously issued on
January 16, and confirmed on May 7 is reconfirmed.
Tim Summers, Executive Chairman, said "Despite challenging
conditions in the upstream energy industry, the Company is trading
successfully. Our continued focus on cost reduction, and improving
the efficiency of our operations, underpins our ability to win
business and compete strongly."
Enquiries:
GMS
Tim Summers, Executive Chairman
Stephen Kersley, Chief Financial
Officer +44 (0) 207 603
Tony Hunter, Company Secretary 1515
Evercore (Sole Financial Adviser
to GMS)
David Waring +44 (0) 20 7653
Edward Banks 6000
--------------------
BofA Securities (Joint Corporate
Broker to GMS)
Thomas Milner +44 (0) 20 7628
Ben Winstanley 1000
--------------------
Investec (Joint Corporate Broker
to GMS)
Chris Sim +44 (0) 20 7597
Henry Reast 5970
--------------------
Brunswick (PR Adviser to GMS) +44 (0) 20 7404
Patrick Handley - UK 5959
Will Medvei - UK +971 (0) 50 600
Jade Mamarbachi - UAE 3829
--------------------
Linklaters LLP has been retained as legal advisers to GMS.
Takeover Code Directors' Confirmations
The statement above with respect to projected ranges of EBITDA
for 2020 constitutes a profit forecast for the purposes of the
Takeover Code (the "Profit Forecast"). The Profit Forecast has been
prepared on a basis consistent with GMS's accounting policies,
which are in accordance with International Financial Reporting
Standards ("IFRS").
The Profit Forecast is based on the following assumptions:
Factors within the control of GMS
-- there will be no material acquisitions or disposals by GMS prior to 31 December 2020;
-- there will be no material disruption in the supplier base of GMS;
-- there will be no material change in the business or operational strategy of GMS; and
-- there will be no material changes to the management of GMS.
Factors outside the control of GMS
-- there will be no material changes to the conditions of the
markets in which GMS operates, including material changes in the
capital spending of GMS' customers;
-- foreign currency exchange rates, interest rates and tax rates
in the geographic markets in which GMS operates will remain
materially unchanged from the currently prevailing rates;
-- the announcement of the agreement with GMS's syndicate of
banks or the proposal from Seafox will not impact customer
orders;
-- there will be no early terminations of GMS's existing contracts;
-- documentation of the revised debt terms and access to new
working capital facilities will be completed in 2020;
-- there will be no material regulatory developments that affect
GMS's operations or the operations of its customers; and
-- there will be no material adverse events that have a
significant impact on GMS' financial condition.
The Directors of GMS confirm that the Profit Forecast has been
properly compiled on the basis of the assumptions stated above and
the basis of accounting used in preparing the Profit Forecast is
consistent with the accounting policies of GMS.
PUBLICATION ON WEBSITE
In accordance with Rule 26.1 of the City Code on Takeovers and
Mergers (the "Takeover Code") , a copy of this announcement will,
subject to certain restrictions relating to persons resident in
restricted jurisdictions, be available at www.gmsuae.com/offer by
no later than 12 noon (London time) on the business day following
the date of this announcement. For the avoidance of doubt, the
content of the website referred to above is not incorporated into
and does not form part of this announcement.
The person responsible for arranging for the release of this
announcement on behalf of GMS is Tony Hunter, Company
Secretary.
FURTHER INFORMATION
Evercore Partners International LLP ("Evercore"), which is
authorised and regulated by the Financial Conduct Authority in the
UK, is acting exclusively as financial adviser to GMS and no one
else in connection with the matters described in this announcement
and will not be responsible to anyone other than GMS for providing
the protections afforded to clients of Evercore nor for providing
advice in connection with the matters referred to herein. Neither
Evercore nor any of its subsidiaries, branches or affiliates owes
or accepts any duty, liability or responsibility whatsoever
(whether direct or indirect, whether in contract, in tort, under
statute or otherwise) to any person who is not a client of Evercore
in connection with this announcement, any statement contained
herein, any offer or otherwise. Apart from the responsibilities and
liabilities, if any, which may be imposed on Evercore by the
Financial Services and Markets Act 2000, or the regulatory regime
established thereunder, or under the regulatory regime of any
jurisdiction where exclusion of liability under the relevant
regulatory regime would be illegal, void or unenforceable, neither
Evercore nor any of its affiliates accepts any responsibility or
liability whatsoever for the contents of this announcement, and no
representation, express or implied, is made by it, or purported to
be made on its behalf, in relation to the contents of this
announcement, including its accuracy, completeness or verification
of any other statement made or purported to be made by it, or on
its behalf, in connection with GMS or the matters described in this
document. To the fullest extent permitted by applicable law,
Evercore and its affiliates accordingly disclaim all and any
responsibility or liability whether arising in tort, contract or
otherwise (save as referred to above) which they might otherwise
have in respect of this announcement or any statement contained
herein.
Merrill Lynch International ("BofA Securities"), which is
authorised by the PRA and regulated by the FCA and the PRA in the
United Kingdom, is acting exclusively as corporate broker for GMS
and for no one else and will not be responsible to anyone other
than GMS for providing the protections afforded to its clients or
for providing advice in relation to the matters referred to in this
announcement. Neither BofA Securities, nor any of its affiliates,
owes or accepts any duty, liability or responsibility whatsoever
(whether direct or indirect, whether in contract, in tort, under
statute or otherwise) to any person who is not a client of BofA
Securities in connection with this announcement, any statement
contained herein or otherwise.
Investec Bank plc ("Investec"), which is authorised by the
Prudential Regulation Authority and regulated in the United Kingdom
by the Financial Conduct Authority and the Prudential Regulation
Authority, is acting exclusively for GMS and no one else in
relation to the Transaction and/or other matters set out in this
announcement and will not be responsible to anyone other than GMS
for providing the protections afforded to the clients of Investec,
or for providing advice in relation to this announcement, the
contents of this announcement or any matter referred to herein.
Neither Investec nor any of its subsidiaries, branches or
affiliates owes or accepts any duty, liability or responsibility
whatsoever (whether direct or indirect, whether in contract, in
tort, under statute or otherwise) to any person who is not a client
of Investec in connection with this announcement, any statement
contained herein or otherwise.
ABOUT GMS
GMS, a company listed on the London Stock Exchange, was founded
in Abu Dhabi in 1977 and has become a world-leading provider of
advanced self-propelled self-elevating support vessels (SESVs). The
fleet serves the oil, gas and renewable energy industries from its
offices in the United Arab Emirates, Saudi Arabia and the United
Kingdom. The Group's assets are capable of serving clients'
requirements across the globe, including those in the Middle East,
South East Asia, West Africa, North America, the Gulf of Mexico and
Europe.
The GMS fleet of 13 SESVs is amongst the youngest in the
industry, with an average age of eight years. The vessels support
GMS's clients in a broad range of offshore oil and gas platform
refurbishment and maintenance activities, well intervention work
and offshore wind turbine maintenance work (which are opex-led
activities), as well as offshore oil and gas platform installation
and decommissioning and offshore wind turbine installation (which
are capex-led activities).
The SESVs are categorised by size - K-Class (Small), S-Class
(Mid) and E-Class (Large) - with these capable of operating in
water depths of 45m to 80m depending on leg length. The vessels are
four-legged and are self-propelled, which means they do not require
tugs or similar support vessels for moves between locations in the
field; this makes them significantly more cost-effective and
time-efficient than conventional offshore support vessels without
self-propulsion. They have a large deck space, crane capacity and
accommodation facilities (for up to 300 people) that can be adapted
to the requirements of the Group's clients.
The Company's Legal Entity Identifier is
213800IGS2QE89SAJF77.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
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contact rns@lseg.com or visit www.rns.com.
END
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