Gulf Marine Services Plc · LSE:GMS
Gulf Marine Services — Investor Presentation (October 2024)
23 slides from Gulf Marine Services's investor presentation, October 2024
Slide 1: Investor Presentation October 2024
Investor Presentation October 2024
Slide 2: Disclaimer
Disclaimer • This document is provided for informational purposes only. It does not constitute an offer to sell or a solicitation of an offer to buy any securities or interests described within it in any jurisdiction. • Any forward-looking statements contained in this presentation or communicated du
Slide 3: Presenting Team
Presenting Team MANSOUR AL ALAMI ALEX ACLIMANDOS Executive Chairman of the Board Chief Financial Officer 40-year career across the Middle East, Over 30 years with first-tier companies viz. Procter & including 15 years in oil & gas Gamble, ABB and Alvarez and Marsal Held various senior roles at ADNOC
Slide 4: Overview
Overview Overview of GMS Asset Class Overview • Established in 1977, Headquartered in Abu Dhabi, UAE, and Premium listed on the London Stock Exchange Large Class (E Class) Mid-Size Class (S Class) Small Class (K Class) • GMS is a leading provider and operator of 13 advanced self-propelled, self-elev
Slide 5: Key Investment Highlights
Key Investment Highlights A leading provider of self‐propelled, self‐elevating support vessels serving the offshore oil, gas and renewables industries, currently 1 operating in both the Arabian Gulf and the North Sea Owns and manages 13 vessels, wherein all work-related risks are assumed / mitigated
Slide 6: Explaining the GMS Model
Explaining the GMS Model Core areas of Contract durations Vessels chartered on operation vary depending on a time basis client and workscope • NOC based opex, including well • NOC c. 3-5 years charters, EPC • Daily charter rate payable and platform maintenance and c. 3 -24 months charters, • Operati
Slide 7: Historical Financial Information
Historical Financial Information New management Previous management and board and board GMS Achieved a Successful Deleveraging via Re-Building a Healthy Reduction in Operating Turnaround by Adopting a Backlog Pipeline Costs as a % of Revenue Accelerated Debt Repayment Three-pillar Approach… 7
Slide 8: Supply and Demand Dynamics are Driving a Resurgence in Dayrates and Utilisations
Supply and Demand Dynamics are Driving a Resurgence in Dayrates and Utilisations; Average Dayrate (USD ‘000s) Utilisation % 59 50 39 36 33 30 30 28 25 26 2015 2016 2017 2018 2019 2020 2021 2022 2023 Q3 24 Day charter rates are still far from their 2015 peak of 59; whereas the utilization rate is bac
Slide 9: Proven Track Record in Achieving Efficiencies and Effectively Managing Costs
Proven Track Record in Achieving Efficiencies and Effectively Managing Costs Operating Costs % of Revenue (%) Adjusted EBITDA Margin (%) Management has achieved a sustained reduction in operating costs as a % of revenue, thus improving margins and overall profitability 9
Slide 10: Successful Deleveraging via Debt Repayment Acceleration
Successful Deleveraging via Debt Repayment Acceleration Net Debt (US$ m) Net Debt / EBITDA (x) The sustained deleveraging has enhanced overall balance sheet health and transferred value from lenders to equity holders; providing management with flexibility to pursue growth opportunities or distribute
Slide 11: A Successful Turnaround Driven by Re-building a Healthy Backlog Pipeline
A Successful Turnaround Driven by Re-building a Healthy Backlog Pipeline Evolution of Backlog (US$ m) and split per year Backlog in 2024 maintaining a position at c. 3x 2023A revenue (ensuring clear visibility on revenues through the next three years) 11
Slide 12: Backlog: secured future revenue as of October 1st, 2024
Backlog: secured future revenue as of October 1st, 2024 Contract Coverage By Asset Fixed Term Contract LOI / Prospect 2024 2025 2026 2027 2028 2029 Vessel Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 1 2 3 4 5 6 7 8 9 10 11 12 13 Firm Options 12
Slide 13: The Way Ahead
The Way Ahead 2024 Outlook Our Plan • Positive outlook continues for 2024; backlog • Continue to take actions to promote creating reached US$465m = c. 3x 2023A revenue value for shareholders (ensuring clear visibility on revenues through the • Completing the documentation for the new debt next three
Slide 14: Appendices
Appendices
Slide 15: Fleet Overview
Fleet Overview Key Specifications of the Entire GMS Fleet Comparative Vessel Capabilities Variable Load Main Semi-subs / Name of Standard Leg Jackup Accomodation Propulsion (VDL) Elevated Deck Area Crane Description of Capabilities GMS Fleet Construction Vessel POB Length Drilling Rigs Rigs / Jackin
Slide 16: Safety Record
No. of Recordable Injuries Per Year Safety Record 2.5 2 2 2 1.5 1 • No recordable injuries in 2024. Recordable injuries include Loss time 1 0.5 injuries (LTI), Restricted Work Cases (RWC) and Medical Treatment 0 0 0 Cases (MTC). 2020 2021 2022 2023 2024 Recordable Injuries • Our LTIR and TRIR trend
Slide 17: Environmental Performance
Environmental Performance • GMS has implemented several measures to reduce emissions over the last 5 years. Some of those measures are: Switching refrigerants to lower emission ones Sequestering some of our CO2 emissions via tree planting • 54,396 tCO2e Reducing plastic water bottle usage offs
Slide 18: Global SESV Footprint
Global SESV Footprint GMS’s core geographies of the Middle East and Western Europe are the largest SESV markets in the world Shallow Region SESVs Fixed Platforms OWF Turbines Key Highlights (kboepd) - Major SESV Region Western Europe 23 3,708 761 6,488 - Sizeable OG market and emerging O&M OWF marke
Slide 19: Offshore Energy Investment Outlook
Offshore Energy Investment Outlook Investment in offshore energy projects is expected to increase significantly over the next five years, driven by a combination of a resurgent oil & gas sector as well as the rapidly growing offshore wind industry Global Energy Demand & Global Energy Demand by Globa
Slide 20: Offshore O&G Production is Expected to Increase Significantly Over the Next Decade
Offshore O&G Production is Expected to Increase Significantly Over the Next Decade, Driven by a 29% Increase in Middle Eastern Production Offshore Oil & Gas Production by Global Energy Demand & Population Outlook Global Oil & Gas Production Outlook Region mmboe/d mmboe/d • WGE estimates global O&G p
Slide 21: GMS and potential lenders reached an agreement to refinance
GMS and potential lenders reached an agreement to refinance • A club of 3 lenders, 2 being current lenders. • Five years conventional term loan in AED, with working capital facility of USD 50 million. • Pricing at 2.5% + Eibor if net leverage is between 2x and 2.5x • Pricing goes to 2.25% + Eibor wh
Slide 22: Board of Directors
Board of Directors MANSOUR AL ALAMI LORD ST JOHN OF BLETSO JYRKI KOSKELO Executive Chairman of the Board Senior Independent Non-Executive Director Independent Non-Executive Director Mansour Al Alami joined the Board of GMS in Anthony St John is a cross bench peer in the House of Jyrki Koskelo joined
Slide 23: Board of Directors (Cont'd)
Board of Directors (Cont’d) CHARBEL EL KHOURY HAIFA AL MUBARAK Non-Executive Director Independent Non-Executive Director Charbel El Khoury joined the Board of GMS in August Ms Al Mubarak joined the Board of GMS in October 2021. He is Group CEO of Mazrui International LLC 2023. Ms Al Mubarak is the C
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