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A Middle East oil group on the upgrade

This operator of liftboats has raised earnings guidance again, buoyed by a tight market, high utilisation rates and rising day rates
A Middle East oil group on the upgradePublished on January 8, 2025
  • Raised earnings guidance
  • Refinanced debt facilities
  • Trading on half the rating of Middle East peers

Gulf Marine Services (GMS:15p), an operator of 13 advanced self-propelled self-elevating support vessels in the Middle East, has raised earnings guidance and refinanced its debt facilities on more attractive terms in the past few weeks.

Buoyed by rising average daily hire rates – up 8 per cent to $32,800 (£26,584) per day year on year – in an ongoing tight market for liftboats, and by high utilisation rates (92 per cent), the directors expect cash profit at the top end of their 2024 guidance range of $98mn-$100mn. In November 2023, the board anticipated 2024 cash profit of $87mn-$95mn. The improving profitability of the business is underpinned by a $500mn order book that now covers three years' revenue.

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