Gulf Marine Services PLC has completed the purchase of a mid-class vessel as it responds to increased market demand, the company confirmed. The transaction represents the firm's first vessel acquisition in ten years and is intended to bolster its fleet and commercial capacity.
The new vessel is expected to be integrated into GMS's fleet within the next two weeks. Once operational, the group will have 15 vessels available for deployment in support of offshore energy customers.
Financing for the acquisition combined short-term borrowing and company cash. GMS secured a $37.4 million 90-day interim loan from a Middle Eastern bank that is part of its existing lending syndicate. The remainder of the consideration was met from the group's cash resources.
Management highlighted that, following the purchase, the group's net leverage remains below 2.0x - a figure calculated excluding any EBITDA contribution from the newly acquired vessel.
Executive Chairman Mansour Al Alami commented on the deal: "This represents the first vessel acquisition by GMS in a decade and marks an important milestone for the Company. The addition of this vessel supports our growth ambitions, while preserving our financial strength and operational flexibility."
Chief Financial Officer Alex Aclimandos added: "We are very pleased with the lenders’ response, which reflects our shared view of the industry and their confidence in GMS’s management. We now look forward to returning to shareholders 20 to 30 percent of adjusted net income."
The company said the vessel will be deployed against several identified commercial opportunities. GMS also indicated it will provide further updates on its backlog and issue revised adjusted EBITDA guidance for 2026 in due course.
Gulf Marine Services is a provider of self-propelled, self-elevating support vessels to the offshore energy industry. With the new addition, the group's operational fleet will total 15 vessels.
Summary
GMS has acquired a mid-class vessel, financed partly through a $37.4 million 90-day interim loan and partly from cash, increasing its fleet to 15 vessels and supporting its target to double 2024 adjusted EBITDA by 2030. Management highlighted lender confidence and signalled plans to return 20 to 30 percent of adjusted net income to shareholders.
Key points
- The company completed its first vessel acquisition in a decade and will integrate the vessel within two weeks.
- The purchase was funded via a $37.4 million 90-day interim loan from a Middle Eastern bank within GMS's lending syndicate, with the remainder from cash resources; net leverage remains below 2.0x excluding the vessel's EBITDA.
- The acquisition aligns with GMS's strategic objective to double adjusted EBITDA from its 2024 base by 2030 and is intended to address identified commercial opportunities in the offshore energy sector.
Risks and uncertainties
- The interim financing is a 90-day loan, creating a short-term funding timeline that will require refinancing or repayment within that period - a financial timing consideration for the company and its lenders.
- Net leverage is reported below 2.0x excluding any EBITDA contribution from the new vessel, which means leverage metrics could change when that vessel's earnings are included.
- The company has said it will provide updates on backlog and revised adjusted EBITDA guidance for 2026 in due course, indicating that future financial guidance and backlog details remain to be disclosed.