Contract

Gulf Marine Services (GMS), a leading provider of self-propelled and self-elevating support vessels for the offshore oil, gas, and renewables sectors, announces the signing of a contract extension for one of its vessels currently operational in the Middle East. Additionally, the company has received a Letter of Award for another vessel, also operating in the Middle East. These two awards span a combined period of 5.2 years.

Considering this, the total backlog has now reached US$ 373 million. This represents approximately 2.45 times 2023 revenues and offers an improved visibility moving forward. Accordingly, GMS is pleased to announce an upward revision of its 2024 adjusted EBITDA guidance, now anticipated to be in the range of US$ 92 million to US$ 100 million, compared to the previous range of US$ 87 million to 95 million.

Mansour Al Alami, GMS Executive Chairman, welcomes these developments, stating:

"We are delighted to make this announcement. It confirms the continuous demand for our vessels and the improvement in day rates and backlog. This is also likely to have a positive impact not only on 2024 results but well beyond. We are hoping to revisit our 2025 EBITDA guidance in the second half of 2024.

Our deleveraging journey continues: We ended 2023 with net debt of US$ 268 million down from US$ 406 million in 2020, a decrease of US$ 138 million of which US$ 107 million were repaid in the last two years."

Alex Aclimandos, GMS Chief Financial Officer, added:

"We welcome the new awards that will help us continue to accelerate deleveraging. We will work hard to achieve the upper end of the adjusted EBITDA guidance, but we remain conscious of the daily operational challenges we will face in the coming ten months."

For further inquiries or information regarding these contract awards or our services, please do not hesitate to contact us.