GMS wins long-term contract for one of its vessels in GCC

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Gulf Marine Services (GMS) has announced the award of a new long-term contract for one of its vessels in the GCC, which takes its backlog to $464 million.

The contract spans a total of five years, inclusive of optional extensions, and contributes to further improvement in fleetwide average day rates.

The company has revised its adjusted EBITDA guidance for 2024 to be in the range of $95 million to $100 million, versus the adjusted EBITDA guidance communicated earlier of $92 million to $100 million.

Mansour Al Alami, GMS Executive Chairman, commented: "This award reinforces the continued high demand for our vessels and reflects the strong utilisation of our fleet in the region. We remain committed to supporting our client's projects and delivering high-quality services across the GCC. The revised EBITDA guidance for 2024 reflects the favourable market conditions"

Favourable fundamentals

Alex Aclimandos, GMS Chief Financial Officer, said: "This contract confirms the favourable fundamentals for our business going forward and allowing us to continue to successfully deleverage. Our net debt today stands at $224 million. Supported by the projected lower cost of financing and the continuing demand for our vessels, the business will generate free cashflow that will help us achieve our various objectives to increase our shareholders investment value. As for our guidance for 2025, we are in the process of revisiting it and shall share it with you in the next couple of months."