The company said its business has been transformed during 2020 with improved earning, margin and fleet utilisation.
Earnings (adjusted EBITDA) for the nine-months is above the plan’s target and is up 25% compared to the comparative period last year. Guidance for 2020 remains unchanged and earnings will be expected at the upper end of the range, which was US$57mln to US$62mln.
The company noted recent contract awards have further improved its order book and lifted fleet utilisation, while activity continues for renewable energy projects too with ‘steady work’ for its vessel in North West Europe through until the end of 2021.
Moreover, Gulf Marine described the outlook in the European renewables market as promising with opportunities emerging as clients seek vessels for projects over a longer-term.
It noted that more vessels have been contracted since its last update, and presently fleet utilisation for 2021 is seen at 69% (in comparison, a year ago the corresponding figure for 2020 was 56%).
Gulf Marine noted that its operations are continuing without material interruption amidst the pandemic, though four vessels had reported COVID-19 cases during the period and effective measure were in place to manage the impact. Crew changes continue to be affected by travel restrictions and quarantine requirements, nonetheless the company highlighted zero ‘lost time injury’ performance for 2020.
“GMS performance has been transformed in 2020, with period-on-period increases in EBITDA, margin and utilisation, as well as new technology delivery and, at the same time, a material reduction in our costs,” said Tim Summers, Gulf Marine chairman.
“These achievements are a credit to the entire GMS team and a demonstration of the improvements we promised. Today we again reconfirm guidance, issued initially in January 2020.
“This performance comes despite the market headwinds brought by the commodity price crash and COVID-19, and the considerable distraction and expense incurred by a rival seeking to take control of the Company. Throughout, GMS has remained focused on delivering on our guidance, and ensuring safe and reliable operations for our clients.”
Gulf Marine shares rose by 4.8% changing hands at 6.5p.
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