Gulf Marine Services Share Discussion Threads

[imranawan] 17/2/2016 10:30

Cheers tintin and for your thoughts. Lets see what the FY results bring and the Outlook statement. Its certainly priced very cheap, but I guess it could get cheaper.

[tintin82] 17/2/2016 10:01

Still holding, 30% down. The continued fall certainly doesn't bode well, make you think whats going on in the background, what we might not know? IMO there is more up than downside. MENA is pumping huge amounts, all thosr installations needs maintenance, still hopefully.

[imranawan] 17/2/2016 09:38

Is anyone still holding GMS? Fall in recent days is worrying with full year results due in March. any thoughts.

[mick] 05/2/2016 08:06

Strange carry on by Norges - buying one day and selling the next day!

[tintin82] 02/2/2016 13:41

Well a vote of confidence from Norges.


Interesting article, an opportunity to GMS long term if it can achieve a good foothold in ongoing contracts in the North Sea.

[doobz] 07/1/2016 11:59

Level 2 currently extremely strong at this point, for those of you that don't have the service

good luck
D

[davr0s] 18/12/2015 19:43

Sold my small holding earlier this week for break even - held up ok but surely has to get hit by the relentless oil sell off at some point

[scobak] 12/11/2015 21:11

Could GMS be a good fit with Lamprell? There is certainly scope for real efficiencies and rationalising of the 2 businesses.

[doobz] 11/11/2015 13:48

Webclick, Thanks very much for clearing this up for me, I have in turn decided to get out at breakeven. Good luck holders D

[webclick99] 11/11/2015 13:02

Still a buy at IC

[tintin82] 11/11/2015 11:24

As expected. I cannot see this coming to much. If there was any chance of cash crunch they would have said, not stated 'healthy balance sheet' Once the peak building program winds down more profits should funnel to reduce the debt load. Hopefully of course :)

[webclick99] 11/11/2015 11:13

IR have responded saying they will not go into detail, but if there were a material change to the current conclusion on their financial position, they would have said something.

[woodcutter] 11/11/2015 10:37

sold my entire holding, too many negatives as jakedog2 alluded to.

I particularly didn't like:

"The Group will continue to keep under review the levels of market demand to determine the timing of future fleet expansion."

I know it's a conservative statement but it suggests to me that the current projects, when completed, may be difficult to find long term orders for, hence the beginnings of a reduction of the order book

Despite the fantastic cash flow at around $120/annum and the improved H2 eps comments the general oil price position is beginning to catch up with GMS by the looks of it. With the possibility of the Saudis raising government bond debt it likely only a matter of time before we see some general cut backs in the region.

I've always been very positive on the stock due to the strong order book and cash flow but the risk has shifted for me, so i'm out as they say!

woody

[tintin82] 11/11/2015 10:29

Thanks webclick, much appreciated

[webclick99] 11/11/2015 10:27

I've just fired off an email to Investor Relations to clarify the banking facility concern. If they reply will update.

[webclick99] 11/11/2015 10:14

Doobz, that's correct. At half way stage, undrawn bank facilities were 45m. Now they are 25m. The last thing we want is a cash call. But where is the information that tells us if the 'substantial cash generation' and remaining bank facilities are enough to complete the build of remaining vessels?

[jakedog2] 11/11/2015 10:06

Stop hit at the open

Mixed update.

However, things which stood out from a 'bear' perspective:

-change in tone from July results. First sign of negatives introduced, such a margin reductions / reduced contract pricing

- Ratio of 'firm' v 'options' contracts has deteriated from July. A sign of things to come ?

- Dept up & undrawn bank facilities reduced by 50% since July - cash call coming ?


Disappointed stop has been hit, but that's what they are therefore & take the emotion out of it.

Will continue to keep on watchlist & may revisit in the furture. GLA

[doobz] 11/11/2015 09:56

Hi all, fairly new to this. does this mean they only have 25mil left that they can borrow in their current debt position:

apologies if this is a silly question

As at the end of Q3 2015 the Group had net debt (including obligations under finance leases of $95.8 million) of approximately $385.8 million (cash of $29.4 million, bank debt of $319.4 million) together with undrawn bank facilities of $25.0 million.

Any help much appreciated

D

[webclick99] 11/11/2015 09:37

I found the update confusing.

'Healthy balance sheet and strong cash generation' but net debt is up from the half way stage and the undrawn bank facilities are also down from half way stage.

'Growth in earnings significantly higher in H2' but then there's a currency hit and trading in line with expectations.

Confused. Any other thoughts. I decided not to add to my holding just yet, until someone can make sense of this update.

[tintin82] 11/11/2015 09:32

Strange price movement imo. High fleet utilisation, strong order book, highly cash generative. I have beeen in for a while and nursing a 20% loss, but fairly confident these will rerate. I would top up more today but already hold quite a number.

[jamiemp] 10/11/2015 14:11

A management statement is due. Interim results were in August.

[dodge meister] 10/11/2015 11:15

Interim results should be any day now

[deanowls] 19/10/2015 11:35

Idexpect them to want to do something being as they have a yard and will not want to lose the expieriance of the staff which assists them as they have said in the last update by being able to custimize the vessels to the clients needs. I'd expect them to continue to grow but look to pay down debt and up the divi prudently also.