AUS
NZ
UK
CA
USA
IND
_06_19_2026_12_34_15_139937.jpg)
Gulf Marine Services (LSE:GMS) has reported a 9% increase in revenue for the first half of the year, reaching $80.7 million. This growth was attributed to a rise in demand for its S-Class vessels and improved fleet day rates.
However, the company's net profit decreased by 15% to $7.4 million, primarily due to increased tax and administrative costs, as well as the effects of fair value adjustments related to warrants. Despite this decline, adjusted EBITDA increased by 8% to $37.3 million, maintaining a robust margin of 59%.
Significant progress was made in reducing debt, with the net leverage ratio improving to 2.62-to-one from 3.05-to-one at the end of 2023. Finance expenses saw a substantial decrease due to these debt reduction efforts and favorable interest rate adjustments.
Gulf Marine Services also reported a notable increase in its secured contract backlog, which grew to $426.8 million by June. This growth reflects strong demand and a considerable rise in charter periods awarded during the first half of the year. New contracts secured during this period included a combined charter period of 14.3 years, compared to just 2.4 years in the same period last year.
Despite the decline in profit, the company remains optimistic about the future. Guidance for adjusted EBITDA in 2024 is projected to be within the range of $92 million to $100 million. Market growth and the anticipated retirement of ageing vessels between 2025 and 2027 are expected to balance new supply, ensuring continued demand for Gulf Marine Services’ offerings.
Executive Chairman Mansour Al Alami highlighted the company’s commitment to deleveraging and shifting value from lenders to shareholders. He noted that the progress made has been supported by higher day rates and disciplined performance in the first half of the year. Despite ongoing challenges such as operational disruptions, inflation, and high borrowing costs, the company remains confident in its ability to manage these risks effectively and navigate towards continued success.
As of 1049 BST, shares in Gulf Marine Services were trading down 4.25% at 15.99p.
