Business
Operational Update
Operational Update.
About this update from Gulf Marine Services Plc
[{"type":"text","content":"\n \nRNS Number : 1994F Gulf Marine Services PLC 16 May 2017 \n\n \n \nGulf Marine Services PLC\n \nOPERATIONAL UPDATE \n \nGulf Marine Services (LSE: GMS), the leading provider of advanced self-propelled self-elevating support vessels (SESVs) serving the offshore oil, gas and renewable energy sectors, provides the following operational update for the period 1 January 2017 to 15 May 2017, ahead of its AGM today.\n\n \nGMS continues to focus on maximising vessel utilisation1 in the current market environment and has achieved a rate of 56% for Q1 2017, an improving level compared to that seen for Q4 2016 of 46%. The secured backlog (comprising firm and extension options) as at 1 May 2017 has increased to US$ 251.3 million (31 December 2016 US$ 174.8 million).\n \nAs previously announced in 2017, a 36-month contract (including options) was awarded for one of the Group's Mid-Size Class vessels in the MENA region to support well intervention activities for a national oil company and this commenced in Q1 2017. Two new long-term contracts for Large Class vessels in Europe were also announced in 2017 to support wind farm projects for an international energy company. These are scheduled to commence in Q2 2018, one contract has a charter period of 26 months (including options) and the other 15 months (including options). \n \nDevelopment of New Services\n \nThe cantilever system on the Group's new Large Class vessel GMS Evolution is scheduled to be ready for operations in June 2017 following the completion of sea trials. Commissioning is well-advanced and progressing as expected. The cantilever system will allow GMS to provide a greater range of well intervention services from the vessel and to compete for well workover activity that was previously only able to be carried out from more expensive and less efficient non-propelled jackup drilling rigs. \n \nFinancial Position\n \nThe Group had a net debt level (being bank borrowings less cash) at 1 May 2017 of US$ 369.9 million. Deleveraging is progressing as planned with year end net debt expected to be in line with previous guidance. Our progress in securing contracts and underlying trading are in line with expectations for 2017.\n \n\n\n \nDu...