Gulf Marine Services Gets Capital Respite

September 27, 2019

(Photo: Gulf Marine Services)
(Photo: Gulf Marine Services)

Gulf Marine Services Plc said on Friday it reached an agreement with lenders to ensure it would have continued liquidity until the end of the year, nearly a month after its top boss quit after the company warned of a shortfall in full-year profit.

The offshore oilfield services contractor, which had delayed the publication of its first-half results earlier this month as it was continuing talks with lenders, said it will announce them on Sept. 30.

The agreement will provide the company with the rollover of its existing $25 million working capital facility, access to bonding facilities which will support the business until the end of 2019.

Shares in the company were seen rising 5%, according to premarket indicators.

Chief Executive Officer Duncan Anderson resigned after Gulf Marine warned a reassessment of its ships and contracts showed profit would fall this year. A source familiar with the matter told Reuters that Anderson, who has served as CEO for 12 years, was asked to step down.

The Abu Dhabi-based company had said a review by new finance chief Stephen Kersley of its large E-class vessels operating in Northwest Europe and the Middle East pointed to 2019 core profit of between $45 million and $48 million, below $58 million it reported last year.

The company said it was continuing talks with lenders for a "long-term solution" focused on agreeing an amendment and extension to its existing facilities by the end of 2019.

Tensions in the Persian Gulf, a worrisome global growth outlook and uncertainty over oil prices have recently dampened investor confidence.


(Reporting by Tanishaa Nadkar and Shashwat Awasthi in Bengaluru; Editing by Bernard Orr)



Current News

Keppel Delivers Jackup to Borr Drilling

Keppel Delivers Jackup to Borr Drilling

TechnipFMC Wins EPC Contract from PetroVietnam

TechnipFMC Wins EPC Contract from PetroVietnam

Denmark to Help Vietnam for Offshore Wind

Denmark to Help Vietnam for Offshore Wind

Crown Estate Opens Offshore Wind Round 4

Crown Estate Opens Offshore Wind Round 4

Boa Offshore Wins AHTS Contracts

Boa Offshore Wins AHTS Contracts

ProPetro Cuts Almost 150 Workers

ProPetro Cuts Almost 150 Workers

Greenpeace Activists Climb Shell North Sea Platform

Magazine

Offshore Engineer (Sep/Oct 2019)

This issue of Offshore Engineer is dedicated to Big Data and Digitalization

Archive
Subscribe

Subscribe for OE Digital E‑News

OE Digital E-News is the subsea industry's largest circulation and most authoritative ENews Service, delivered to your Email three times per week