Gulf Marine Services (LSE:GMS) has agreed to acquire a new mid-class self-elevating support vessel, marking its first fleet addition in a decade and increasing total vessels in operation to 15. The purchase is intended to support strong demand across offshore energy markets and aligns with management’s longer-term objective of doubling adjusted EBITDA from 2024 levels by 2030.
Operational and financial highlights
The acquisition is being funded through a combination of cash and a US$37.4 million short-term loan provided by an existing member of the group’s lending syndicate. Following completion, net leverage is expected to remain below 2.0x, preserving balance sheet flexibility. Management noted that the vessel has already been aligned with identified commercial opportunities, helping ensure early utilisation.
The transaction reflects improved lender confidence following the company’s operational and financial turnaround in recent years. Management also indicated that the strengthened position could support further fleet growth over time, alongside intentions to return between 20% and 30% of adjusted net income to shareholders.
From an investment standpoint, the outlook is underpinned by solid fundamentals, including strong revenue growth, high operating margins and robust free cash flow generation, combined with a relatively modest P/E valuation. Share price technicals remain constructive, supported by a clear upward trend, although elevated momentum indicators such as RSI and Stochastics point to a higher risk of near-term consolidation.
More about Gulf Marine Services
Gulf Marine Services is a London Stock Exchange–listed offshore services company founded in Abu Dhabi in 1977. It is a leading global provider of self-propelled, self-elevating support vessels (SESVs) to the offshore energy industry. Operating one of the youngest SESV fleets worldwide from bases in the UAE, Saudi Arabia and Qatar, the group supports offshore platform maintenance, well intervention and offshore wind activities across the Middle East, South East Asia, West Africa, North America, the Gulf of Mexico and Europe, using its versatile K-, S- and E-Class vessels to deliver cost- and time-efficient solutions.
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