Gulf Marine Services raises outlook despite Middle East tensions

(Sharecast News) - Gulf Marine Services boosted its full-year outlook on Tuesday, despite ongoing geopolitical uncertainty in the Middle East and a hike in tax expenses. Revenues at the London-listed firm, which provides support vessels to the offshore oil, gas and renewables industries, rose by 8% to $87.1m in the six months to 30 June.

The increase was attributed to an improvement in fleet average day rates, to $35,100 from $32,400, as well as operating an additional leased vessel for two months.

However, that was partially offset by a fall in fleet average utilisation, to 87% from 91%.

GMS said the decrease was due to planned maintenance, mobilisation to prepare vessels for next contracts and the ongoing geopolitical instability in the Middle East.

Adjusted earnings before interest, tax, depreciation and amortisation were 6% higher at $50.8m but net profits slumped 47% to $3.9m, following a hike in tax expenses to $12.9m.

In particular, the group paid $5.7m to the Saudi Arabia tax authorities during the period, after a court ruled against GMS.

Mansour Al Alami, executive chair, said: "Despite ongoing operational and market challenges, including recent geopolitical tensions, we grew the business and remain confident of stronger performance through the rest of the year."

The group now expects full-year adjusted EBITDA to come in between $101m and $109m, up from previous guidance for between $100m and $108m.

It continued: "Despite some uncertainty regarding geopolitical issues and some increased supply from new vessels entering the market in the coming months, we continue to target an EBITDA in the range of $105m to $115m for 2026."

GMS, which was founded in Abu Dhabi in 1977, currently owns 14 self-elevating support vessels.

Shares in GMS were down 8% at 16.69p as at 1100 BST.