Gulf Marine Services Share Discussion Threads

[loglorry1] 15/11/2022 17:34

It's the 6p warrants and worries over higher interest costs as rates rise.

[hpcg] 15/11/2022 16:21

I know, it is the lack of resolution that is, I think, putting investors off. There isn't a lot of other explanation when contracts have come in and oil support services are going gangbusters.

[catsick] 15/11/2022 13:18

The warrants issue is not a big deal, it is minimal dilution at above the current price, they will be making sufficient cash flow to keep the banks very happy, all these new contracts will make a refinance fairly easy

[hpcg] 15/11/2022 13:16

The board needs to get on with the raise or more likely warrant issue. Potential investors are clearly waiting on that and it is now holding the price back. I'd be happy with the equity raise so long as my rights are respected.

[catsick] 15/11/2022 11:02

At least another 70m usd on the backlog now which will be huge and lock in a good chunk of profit, also good to see rigs being put to work on wind farms which is just going to make the support vessel market tighter for longer

[gen_romer] 04/11/2022 13:40

shame this keeps sliding even with good news

[catsick] 04/11/2022 03:57

Yes its not a driller but the prices for service rigs do move in tandem with drill ships, they certainly earn a much higher ebitda margin than the drilling vessels at the moment, compared to highly leveraged transocean the gms shares should be around 13p at the moment, less geared noble as a comparison would have these shares over 20p which in a couple of years is where I think we will be

[hpcg] 03/11/2022 11:53

GMS isn't a driller, it provides accommodation rigs.

[catsick] 03/11/2022 11:35

They are paying the debt down very fast, at libor+300 its not a disaster and day rates are going to improve things at a much faster clip than the interest bill rising

[loglorry1] 03/11/2022 11:31

Their interets expense is going up fast. That's a big factor for them with so much debt even if they are repaying it down quickly. Plus the warrant overhang at 6p.

[catsick] 03/11/2022 11:12

The only negative in the interim results they got smacked on was the fall in the backlog, they have now probably added 140m usd of backlog in 3 months to put it at the highest level in years and the stock price doesn't care, compared to the larger drill companies like noble and transocean these shares are super cheap in a market that is clearly improving fast...

[trident5] 03/11/2022 09:06

Whoops - you're right; I missed that.

[clanger66] 03/11/2022 08:36

Hi trident, it did mention improved day rates.These contract awards, with improved day rates, equate to seventy-eight months of utilisation, significantly increasing the overall fleet backlog and secured revenue.Was towards the end of the announcement.

[gen_romer] 03/11/2022 08:36

"These contract awards, WITH IMPROVED DAY RATES, equate to seventy-eight months of utilisation, significantly increasing the overall fleet backlog and secured revenue."

clear enough?

[trident5] 03/11/2022 08:27

no mention of "improved day rates" - last two contract RNSs did mention that.

[gen_romer] 03/11/2022 08:12

Always been the case,and not sure why because other drillers give contract values.But 2023 guidance should give an idea to investors.

[marmar80] 03/11/2022 07:58

Yes, but no numbers given

[catsick] 03/11/2022 07:48

Yes they have now added more than 12 months of orders across the whole fleet in the last 3 months, which is going to mean higher utilisation at higher day rates and higher earnings

[gen_romer] 03/11/2022 07:32

New contracts!

[hpcg] 28/10/2022 12:37

Lots of movement in services, especially US onshore, after the SLB report. Oil price consistency is helping a lot, and the refocus of European gas from Russia to anywhere else is good for activity in the Gulf. Similarly I can't see North Sea wind declining any time soon and Europe needs to make to most of indigenous energy.

[gen_romer] 28/10/2022 09:29

Nice volumes yesterday....seems like one day thing though

[hpcg] 29/9/2022 13:15

They can't sensibly give away rate information publicly. These contracts are bid competitively and that would be providing market information to competitors. Equally there will be constraints from the other party.

[xxx] 29/9/2022 11:24

It would have been helpful if the co. would have included a guide to the day rate in these contracts. They did earlier in the year, +30% from memory.
Agree with @hpcg, if rates are rising, depending on the visibility of cycle duration, they should want to keep leases on the shorter side, tobenefit from the pick up the rates. 6 years seems long esp with utilisation where it is, though I am not in the industry.

[trident5] 29/9/2022 09:40

Yes, I think they add the two vessels together to get the total duration; and it's not clear whether the individual durations differ - no reason they should be both 36 months.