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The UK like other countries of the world has been devastated by the naval coronavirus, to break the chain government imposed complete lockdown in the nation, which led to the economy coming to a grinding halt. Several companies are struggling for their survival as there have been no business activities since the past over a month. Meanwhile, lots of companies have been announcing their earnings and giving updates on the impact of covid-19 on their businesses. Here we are going to discuss the results of two companies coming from two diverse industry groups who have been chosen to publish their results amidst the current global crisis. Gulf marine Services Plc and Royal Bank of Scotland Group Plc are two of the prominent companies in their individual categories. Their performance can be seen as a reflection of the state of affairs with their industry peers.
Gulf Marine Services Plc
Gulf marine Services Plc (LON:GMS) is an Abu Dhabi domiciled advanced self-propelled self-elevating support vessels (SESVs) fleet company providing its services to oil & gas and renewable energy industries across the world. Founded in the year 1977 the company has acquired the status of a world leader in its class, its offices are located in Saudi Arabia, United Arab Emirates as well as the United Kingdom. The company is capable of providing its services across all regions in the world, including West Africa, North America, the Middle East, South East Asia, the Gulf of Mexico as well as Europe.
The company owns and operate thirteen advanced self-propelled self-elevating support vessels (SESVs) and are the youngest in this class of ships owned by companies in this industry across the world. These vessels having an average age of eight years are capable of supporting the company’s clients across every range of activities that are required in offshore oil and gas platform operations, their refurbishment as well as maintenance. The company’s vessels also provide intervention work and offshore wind turbine maintenance work for the offshore wind energy companies, as well as offshore oil and gas platform installation and decommissioning as well as offshore wind turbine installation and commissioning.
The shares of the company are listed on the London Stock Exchange. There they are traded under the identifier GMS. The company is part of the main market segment of the exchange and also forms the part of the FTSE AllSmall index.
Earnings Update
The company on 1st May 2020 came out with an update on the earnings performance for the full year of 2019.
- The total revenues of the company for the period was $108.7 million compared to $ 123.3 million for the corresponding period previous year of 2018, down by 11.8 per cent.
- The total Adjusted EBITDA of the company for the period was $ 51.4 million compared to $ 58.0million for the corresponding period previous year of 2018, down by 11.37 per cent.
- The total loss for the company for the reported period was $ 85.5 million compared to $ 5.1 million for the corresponding period previous year of 2018 up by 17.6 times.
Gulf marine Services PLC’s stock trading performance at the London Stock Exchange
The shares of the company were at GBX 5.37 on the London Stock Exchange at the time of closing of the market on 1st May 2020. The market capitalisation of the stock at the time was reported at £18.96 million.
In the past 52 weeks of trading on the exchange, the shares of the company have touched a price of GBX 2.10 on the lower side and a price of GBX 13.35 on the higher side. The trading activity of the stock exhibit a Beta of 2.56 signifying higher volatility compared to the benchmark index.
Outlook
The performance of the company for 2019 has been below expectations. The company is expected to struggle further in 2020 because of the impact of the pandemic.
Royal Bank of Scotland Group Plc
Royal Bank of Scotland Group Plc (LON:RBS) is a UK based multinational banking and insurance holding company. The group is partly owned by the government of United Kingdom through UK Government Investments, a company which is a wholly owned by the UK Government. The company offers services in personal banking, private banking, business banking, insurance and corporate finance. It has operations across the United States, Europe and Asia. The group’s subsidiaries are The Royal Bank of Scotland, NatWest, NatWest Markets, Coutts and Ulster Bank. The group is the only company in the United Kingdom authorised to print the £1 note.
The stocks of the group are listed for trading at the London Stock Exchange and at the New York Stock Exchange. At the London Stock Exchange, they trade with the ticker name RBS, and for trading, at the New York Stock Exchange, they have been provided with the same ticker of RBS. The shares of the group are components of the FTSE 100 index.
Earnings Update
The company on 1st May 2020 came out with an update on the earnings performance of the company for the quarterly period ending on 31 March 2020.
- The total Operating profit before tax of the company for the period was £519 million compared to £1,013 million for the corresponding period previous year of 2019, down by 48.76 per cent.
- The total Profit attributable to ordinary shareholders of the company for the period was £288 million compared to £707 million for the corresponding period previous year of 2019, down by 59.26 per cent.
- The basic Earnings per share of the year of the company for the period was 2.4 pence compared to 5.9 pence for the corresponding period previous year of 2019, which is down by 59.26 per cent.
Royal Bank of Scotland Group PLC’s stock trading performance at the London Stock Exchange
The shares of the company were at GBX 113.25 on the London Stock Exchange at the time of closing of the market on 1st May 2020. The market capitalisation of the stock at the time was £13.70 billion.
In the past 52 weeks of trading on the exchange, the shares of the company have touched a price of GBX 101.15 on the lower side and a price of GBX 265.00 on the higher side. The trading activity of the stock exhibit a Beta of 1.43 signifying higher volatility compared to the benchmark index.
Outlook
The performance of the company for the first quarter of 2020 has been below expectations, and the impact of the pandemic is likely to weigh further on the performance of the bank in 2020.
