Abu Dhabi-based offshore energy services firm GMS has raised its 2020 EBITDA guidance compared to its 2019 outturn, citing new contracts and cost cuts.
"Guidance for 2020 EBITDA is in the range of $57 - $62m, compared to an expected 2019 outturn at the higher end of the previously disclosed $48 - $50m range," GMS said in a statement on Thursday.
London-listed GMS said its expected 2020 performance would reflect the annualized impact of further cost savings achieved over the past six months, together with success in winning new business, which has underpinned a material increase in vessel utilization.
GMS is the operator of a fleet of self-propelled self-elevating support vessels used by offshore oil & gas and renewables companies.
Per the GMS statement, fleet utilization of 73% has already been secured on committed contracts for 2020 (including options), "which represents good progress versus the 69% utilization level achieved in 2019."
Tim Summers, Executive Chairman, said: "Our business has been through a challenging twelve months, but we are now beginning to see the benefits of everyone's hard work across the organization: driving cost savings, improving operational efficiency and securing additional business."