Gulf Marine Services Plc · LSE:GMS
Gulf Marine Services — Investor Presentation (May 2021)
22 slides from Gulf Marine Services's investor presentation, May 2021
Slide 1: Investor Presentation 2021
Investor Presentation 2021
Slide 2: Presenting team
Presenting team MANSOUR AL ALAMI ANDY ROBERTSON Executive Chairman of the Board Chief Financial Officer 40 year career across the Middle East, 25 years finance and business development including 15 years in oil & gas in oil & gas Held various senior roles at ADNOC, a key client 13 years with GMS, in
Slide 3: Who are GMS?
Who are GMS? ASSET CLASS OVERVIEW A leading provider and operator of 13 advanced self-propelled, self-elevating support vessels Large Class (E Class) Mid-Size Class (S Class) Small Class (K Class) Average fleet age of 10 years – expected useful life of up to 40 years Offers clients significant cost
Slide 4: Business model
Business model Core areas of operation Vessels chartered on a time basis • NOC based opex, including well and platform maintenance • Daily charter rate payable and enhanced oil Recovery – c.50-70% of revenue • Operation and vessel maintenance remain with GMS • EPC led capex, including new developmen
Slide 5: HSE track record
HSE track record Total Recordable Injury Rate 0.4 0.3 0.3 0.3 0.3 0.2 0.2 0.2 0.2 0.2 0.2 0.2 0.1 0.1 0.1 0.1 0.1 0.1 0.0 0.0 0.0 Dec-19 Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 Days Since Last Lost Time Injury by Vessel 7,000 5,820 6,000 4,908 4,724 5,000
Slide 6: Emerging from a harsh down cycle
Emerging from a harsh down cycle Average Charter Day Rates Average Utilisation 70 100% 60 90% 50 % Utilisation 80% USD $000 40 30 70% 20 60% 10 - 50% 2015 2016 2017 2018 2019 2020 2015 2016 2017 2018 2019 2020 Significant cut in spend from oil and gas clients across both capex and opex Uptick in ren
Slide 7: Resiliency through the cycle
Resiliency through the cycle EBITDA EBITDA Margin EBITDA Margin % 150 100% 90% 100 80% USD $m 70% 50 60% 50% - 40% 2015 2016 2017 2018 2019 2020 2015 2016 2017 2018 2019 2020 Capex Unlevered Free Cash Flow 250 150 200 100 USD $m USD $m 150 100 50 50 - - 2015 2016 2017 2018 2019 2020 2015 2016 2017 2
Slide 8: Cost base optimisation
Cost base optimisation Opex per day for fleet* G&A costs* 16 25 15 20 14 15 USD $m USD $k 13 10 12 5 11 10 - 2015 2016 2017 2018 2019 2020 2015 2016 2017 2018 2019 2020 Significant reduction in cost base, with over $20m of ongoing annualised cost savings implemented in the past 2 years Cost base clo
Slide 9: 2020 Financial Summary
2020 Financial Summary 2020 Results • Utilisation 81% (2019: 69%) despite impact of COVID-19 on some contract awards • Adjusted EBITDA at US$ 50.4m • 31% reduction in general and administrative expenses compared to 2019 • EBITDA margin increased from 47% in 2019 to 49% in 2020 • Solid base for growt
Slide 10: 2020 Summary Financials
2020 Summary Financials Income Statement Balance Sheet US$ m FY 2020* FY 2019 % Change The Fleet Revenue 102.5 108.7 • Net book value US$ 559.7 m • Impairment charge of US$ 87.2m Cost of sales less impairment (42.3) (43.3) 2% Working Capital Vessel Impairment charge (87.2) (59.1) US$ m Dec 2019 Dec
Slide 11: Deleveraging the balance sheet
Deleveraging the balance sheet Key terms of Bank facilities Renegotiated Bank Deal • $390m amortising Term loan until 30 June 2025 Renegotiated bank deal offers clear path to right size the balance sheet: • $50m working capital facility ($25m cash and $25m Bonds) • Deleveraging, leading to a transfe
Slide 12: Backlog: secured future revenue
Backlog: secured future revenue 2021 2022 2023 2024 Vessel • 80% of 2021 utilisation secured M J J A S O N D Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Firm Shamal • Long term contracts held with NOCs Options Pepper providing well and platform Kamikaze maintenance with continued Scirocco demand at end of c
Slide 13: Historical financial information
Historical financial information US$m 2015 2016 2017 2018 2019 2020 2020 Highlights Fleet utilisation 98% 70% 61% 69% 69% 81% • $20m+ of annualised cost savings implemented, driving improved Revenue $219.7 $179.4 $112.8 $123.3 $108.7 $102.5 margins Opex 61.4 52.4 39.1 48.0 43.3 42.3 • Improved utili
Slide 14: Positive market dynamics
Positive market dynamics Pick up in oil and gas activity predominately driven by Increasing utilisation and tendering activity (re-tender and new work) across core markets NOC’s increasing production levels and catching up on overdue maintenance work: Renewables: • Short term recovery, with delayed
Slide 15: Outlook and summary
Outlook and summary Modern and flexible fleet, with estimated life expectancy of up to 40 years, underpinned by secured backlog Margin growth through ongoing cost savings and favourable market dynamics Renegotiated bank deal supports deleveraging and optimisation of the balance sheet New Board and t
Slide 16: Appendices
Appendices
Slide 17: 2020 Revenue by Segment
2020 Revenue by Segment Revenue by Geographical Location 97 Utilisation % 92 12% NW Europe 86 25% 81 17% KSA Qatar 19% 30% UAE 68 69 65 12% 51 52% 33% 6.0 2020 E-Class S-Class K-Class Fleet Average 2020 2019 2019 40 8.5 10 Day Rates US$ 000s’ Revenue by Customer 12 9% IOC 33 13 12% 25% 32 31 Renewab
Slide 18: ESG – in 2020
ESG – in 2020 Environment Social Governance ISO 14001 Accreditation Equal opportunity employer, with zero tolerance of Working towards Board being compliant with UK discrimination policy Corporate Governance Code Vessels fully compliant with latest IMO resolution (IMO 2020) for reduction of Sulphur
Slide 19: Board of Directors
Board of Directors MANSOUR AL ALAMI HASSAN HEIKAL RASHAD SAIF AL JARWAN Executive Chairman of the Board Deputy Chairman/Non-Executive Director Senior Independent Non-Executive Director Mansour Al Alami joined the Board of GMS in Hassan Heikal joined the Board of GMS in November Rashad Al Jarwan join
Slide 20: Board of Directors
Board of Directors JYRKI KOSKELO LORD ST JOHN OF BLETSO Independent Non-Executive Director Independent No-Executive Director Jyrki Koskelo joined the Board of GMS in February 2021. Anthony St John is a cross bench peer in the House of He currently serves as a Board member of, Africa Lords. As a prac
Slide 21: Management team
Management team MANSOUR AL ALAMI ANDY ROBERTSON MARK HARVEY Interim Executive Chairman of the Board Chief Financial Officer Chief Operating Officer Mansour Al Alami joined the Board of GMS in November Andy Robertson has 25 years’ experience working in the Mark joined GMS in 2015. He holds an MSc in
Slide 22: Fleet & operating strength
Fleet & operating strength Offer clients significant cost and efficiency Long term, successful record of safe, reliable saving, over the alternative vessel types and efficient operations • Able to undertake multiple moves quickly, with no • Well maintained fleet, with a below industry average age ad
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