Gulf Marine Services Share Discussion Threads

[che7win] 07/11/2016 22:41

The Middle East has remained a steady source of projects even while they have been curtailed in many other oil provinces globally. For example, Abu Dhabi-based Gulf Marine Services (GMS), a provider of offshore jack-up barges, said that despite seeing some downturn globally as a result of low oil prices, demand in the region has remained robust."Worldwide we are seeing some pain, but again in the Middle East, production is still very high and projects are proceeding as anticipated," said Duncan Anderson, the chief executive of GMS

[bmw30csl] 01/11/2016 18:04

Pretty good update for this market.

[che7win] 01/11/2016 15:47

Chart looks strong.

[che7win] 31/10/2016 13:30

Doubt it:No material bank debt maturities falling due in the near term. Current debt facility matures in 2021Committed undrawn bank facilities of US$ 175.0 million and Group cash balance of US$ 32.7 million at 30 June 2016.Would be nice to hear about some more contracts, I agree, but they are lowest cost for their customers, so should stay at high utilisation.

[trident5] 28/10/2016 13:55

No new contracts soon = rights issue

[bmw30csl] 28/10/2016 13:13

Because they don't have a european banking syndicate - their arab gulf banks are worrying about drillers going bust - if the banks was that worried dividend would have been pulled already.

[trident5] 28/10/2016 13:11

How do you know the banks aren't worried - they're likely trading around their covenant limit and I think they'll be coming to their shareholders not the banks for any future funding.

[bmw30csl] 28/10/2016 12:27

This stock has been totally left behind - the market is missing the fact that heir banks are not worried by their current trough cycle leverage and it is delevering even at these less good utilisation levels.

[che7win] 27/10/2016 16:11

Thanks hpcg,
on the research, the jack up rigs market which GMS specialises in is expected to bounce back first.
The semi-submersible and drill ships for the deeper waters is struggling and has over capacity - not GMS's market.

I like the jv GMS are doing to expand their operations via the cantilever systems. They have received interest in this market. They stress that they are lowest cost to their customers so that is why they were at much higher utilisation rates.

The icing on the cake would be some kind of OPEC deal - my view is that fundamentals have to take over at some stage regardless.

jimbox, I think we need some more time before the market is sure the next upcycle is in place - a better oil price will help - and it is already double year lows.

If oil rose strongly, then the gearing effect here would mean it could triple, but right now they need to continue to work on good utilisation rates.

[jimbox1] 27/10/2016 15:10

Shouldn't this be on a PE of 8 - 10, like other cyclicals?

[che7win] 27/10/2016 14:49

hpcg,
if you look at the sector, most of GMS's peers have similar levels of debt, I was surprised when I researched it.

I'm top heavy here, but had to buy more when it fell down to 40p, I've sold those ones so back to my core amount.

This stock trades strangely, I hope they have more contracts to announce soon.

[hpcg] 27/10/2016 14:07

Yes looking very good. I made a timely return at the beginning of the week and a bit shocked and happily surprised at the speed of the reverse. Distinct low and higher low on the chart now. HTG just did a raise at 485p which has been well received. Price now at 517p. In other words capital markets are open to oil services with debt but good operations.

[jamiemp] 27/10/2016 13:35

haha, I actually break even this time at 53p. Unfortunately I'm on US time and slept through a brief moment of profit.

[wad collector] 27/10/2016 12:58

Wow , another 150% rise and I will have my money back..

[che7win] 27/10/2016 09:38

trident,
removed, thanks.

[trident5] 26/10/2016 22:23

Che7win
wrong thread - that's not this company.

[che7win] 26/10/2016 15:52

Oil has just jumped too.

[che7win] 26/10/2016 15:41

Chart looks good to run up