Business
New contract win and trading update
New contract win and trading update.
About this update from Gulf Marine Services Plc
[{"type":"text","content":"\n \n \n RNS Number : 9585N\n Gulf Marine Services PLC\n 26 May 2020\n \n \n \n \n NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN WHOLE OR IN PART IN, INTO OR FROM ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OF SUCH JURISDICTION\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n FOR IMMEDIATE RELEASE\n \n \n \n \n \n \n \n 26 May 2020\n \n \n \n \n \n \n \n \n Gulf Marine Services PLC\n \n \n \n \n \n New Contract Win and Trading Update\n \n \n \n Gulf Marine Services PLC (\"GMS\" or the \"Company\") announces a new contract award, and a trading update. \n \n \n Contract Award\n \n \n GMS announces the award of a seven-month contract (firm plus options) for an E-Class (large) vessel. GMS will provide support for offshore activities on behalf of a Middle East client. The vessel will be mobilised for the start of operations during the summer of 2020. GMS has also secured a two-month contract extension of a K Class (small) vessel, also for a Middle Eastern based client. This increases total GMS fleet utilisation to 82% for 2020. The last time the GMS fleet operated at these levels of utilisation was in 2015 on a calendar year basis.\n \n \n \n Trading Update\n \n \n \n \n \n \n Year to date performance remains ahead of the Business Plan, with April actuals now in. The order book continues to be built, and fleet utilisation for 2020 is now at 82% with a further 53% of the fleet secure for 2021. Contract rates reflect current market conditions and remain within our expectations.\n \n \n Progress on costs continues with further reductions onshore and offshore, where reductions of 6% in the offshore organisation through crewing efficiencies have been achieved so far this year. This is in addition to a 22% reduction in the onshore organisation through headcount reductions achieved in the first quarter.\n \n \n Onshore staff continue to work remotely, and no material interruptions in the supply chain have been incurred. Of the two vessels with reported COVID-19 cases, one has remobilised to the field already following crew testing and deep-cleaning, and the other is preparing to remobilise.\n \n \n Guidance for 2020 ($57-62 million EBITDA), previously issued on January 16, an...