Gulf Marine Services Share Discussion Threads

[hpcg] 02/8/2017 16:00

I'm out. There will opportunities to buy in again if warranted, but downside risk too great at this time.

[cw6365] 02/8/2017 15:56

Shame, good business that's been unlucky. Hopefully one day it can bounce back.

[rhomboid] 02/8/2017 15:35

Trading Update ...or warning, only sold a few weeks back as covenants concerned me, this now seems an issue. If I held I'd be selling, good luck anyhow




Gulf Marine Services PLC

('Gulf Marine Services', 'GMS', 'the Company' or 'the Group')



TRADING UPDATE



Gulf Marine Services (LSE: GMS), the leading provider of advanced self-propelled self-elevating support vessels (SESVs) serving the offshore oil, gas and renewable energy sectors, provides the following trading update for the period 16 May 2017 to 1 August 2017.



Overall the Group is continuing to see good levels of tender activity and is progressing a number of opportunities, but is encountering some delays in contract awards and commencement dates.



Discussions with a client regarding two new contracts for SESVs in the MENA region are well advanced and the Group is anticipating that these will be finalised shortly. The contracts, which are currently expected to commence at the end of Q1 2018, are for a Large Class vessel with a charter period of eight months (including options) and a Mid-Size Class vessel with a charter period of eight months (including options).



A contract extension has been confirmed for one of the Group's Mid-Size Class vessels currently operating in the MENA region, the extension period is for five months (including options) to the end of 2017. A contract extension to the end of Q1 2018 has also been agreed for a Small Class vessel in the MENA region. As scheduled, a Large Class vessel has commenced a previously announced 18-month charter (including options) in Europe.



A Large Class vessel, operating in Europe, will complete a two-year firm charter period at the end of Q3 2017. Two additional 12-month extension options are unlikely to be exercised by the client. This vessel will be utilised on a previously announced long-term contract for a renewable energy client in Europe commencing in Q2 2018.



Financial Position



The Group's operational update on 16 May 2017 noted that the actual timing of contract awards is dependent on its clients' operational requirements. As certain potential contract awards and commencement dates have been delayed, the Group is now expecting 2017 EBITDA to be US$ 58.0 million - 68.0 million, (equivalent to an EBITDA margin above 50%), with this guidance subject to the precise timing of contract awards. The Group continues to generate positive operating cash flows, with net debt anticipated to be US$ 360.0 million - 370.0 million at the end of 2017. Net income in 2017 is expected to be US$ 1.0 million - US$ 10.0 million.





The Group is in constructive dialogue with its banking syndicate on appropriate covenant amendments following the deferment of potential contract awards and the Board remains confident of the banks' continued support. A further announcement will be made once negotiations have been finalised.



Duncan Anderson, Chief Executive Officer of GMS, said:



"Demand for our Large Class and Mid-Size Class vessels is good, with the strategic reshaping of our fleet through our new build programme investment in these larger vessels proving prescient. While we are seeing good levels of tender activity in Europe and parts of the Middle East, these are taking longer to convert into contracts than has been typically the norm. The precise timing of contract awards is inevitably subject to our clients' own operational requirements, and in the current environment can be delayed as a consequence of a protracted tender evaluation and award process.



"Discussions are progressing with a number of clients about our cantilever innovation, reinforcing our view that the cantilever has the potential to deliver significant cost efficiencies in a broader range of work scopes for our SESVs.



"GMS has an exceptional fleet of advanced SESVs and our flexibility makes us very attractive for clients seeking safe and highly cost-effective offshore support solutions. We are confident we have the right business model and strategy in place to ensure we are in the best possible position to secure new contracts as the market environment improves."

[richtea2517] 26/7/2017 18:42

Already is

[che7win] 25/7/2017 17:46

This will wake up as the oil price recovers imho.

[mick] 21/6/2017 15:45

Thanks cyfran101 - I must have missed that in the STimes.

[cyfran101] 21/6/2017 15:39

I'm afraid I'm not currently aware what broker notes The Sunday Times was Referring to.

[mick] 20/6/2017 12:21

Cyfran101 - Did I see that Barclays Capital reiterated their price target of 85p on 17th May? Any idea of broker updates since then?

Thanks

[cyfran101] 19/6/2017 17:41

Bearish broker notes the main cause apparently.

[mick] 16/6/2017 16:06

Neither is the recent sale by Gulf Capital helping!

[seangwhite] 16/6/2017 15:19

Looks like 50p is more likely than 80p.POO is not helping.

[richtea2517] 13/6/2017 11:32

Decent drop for reentry

[koolio] 07/6/2017 10:07

Looked in here expecting to see some comments on the Qatar situation and how it relates to contractors and business's in the UAE and wider region.
I'm looking for a buy in opportunity, but think I will sit on my hands a while longer.

[nimrod22] 03/6/2017 10:27

Seacor Holdings (CKH NY)spun out Seacor Marine (SMHI NY)as a separate company yesterday. Also reported that International Shipholding is to become a subsidiary of Seacor Holdings.
Teekay Tankers (TNK) merging with Tankers Investment (TIL).
Many interesting shakeouts going on as the shipping industry aligns itself for a recovery.

[phowdo] 02/6/2017 11:58

Oil price (and perhaps PFC) weighing on the shareprice. Volume is low though.

Energy sector a bit volatile after yesterday.
Cant see a US coal industry revival though despite what Trump wants or says.

[seangwhite] 24/5/2017 21:34

A slow and steady as she goes newsflow will push this higher over the next few months , and the divi helps!

[richtea1701] 24/5/2017 19:54

Yep - looks poised for an assault on £1

[hpcg] 24/5/2017 17:39

It was an obvious buy the dip, rebounded rapidly from the last Gulf Capital placing too.

[richtea1701] 24/5/2017 15:53

Fair few buyers around

[hpcg] 17/5/2017 16:46

Gulf Capital placing another 53mm shares. Good to see more of that overhang get shifted.

[muffster] 11/5/2017 09:01

Hpcg, agree with you although the chart here looks compelling and from the viewpoint that many oil majors, particularly BP are expanding drilling, I see GMS stand to benefit, with new ships. Debt is a concern but the Nav here is approx £1. Slowly building my holding, expecting good results

[hpcg] 05/5/2017 09:57

Consolidating. XD now, and oil is in a bad way. My opinion is that oil price itself is misleading at this stage of the cycle. Oil services are paid for activity, which is a function of work and ultimately volume. We also have to factor the survivors are known, and the victims of debt also pretty much known. There isn't anything to get excited about here at the moment.
I think oil recovers, though the top end very much capped this year, so my tentative plan is to play some of the high beta names for the rebound and then recycle that into the slower movers, of which I think this is one.

[my retirement fund] 04/5/2017 23:58

Seems to be fairly quiet here lately

[pbutterworth1] 18/4/2017 18:37

On a bad day for uk markets....GMS has gone up.....

[seangwhite] 11/4/2017 11:25

One of the few Oil shares to pay a divi and has good prospects going forward. The 100p looks like it could be met this year as POO looks to stay over $50.VGLTA