Gulf Marine Services (LSE:GMS) has converted a US$37.4 million bridge loan into a five-year term loan under its existing syndicated financing facilities, strengthening the group’s long-term funding position. The bridge loan, originally arranged in January 2026 to finance the acquisition of a new vessel, has been incorporated into lending agreements with HSBC, First Abu Dhabi Bank and Commercial Bank of Dubai without any changes to margins, covenants or security arrangements. The refinancing also does not increase the company’s overall debt and better aligns the financing with the operational life of the vessel.
The company has also secured an additional working capital facility equivalent to US$7.5 million from Commercial Bank of Dubai. Up to 40% of the facility can be drawn in cash, with pricing set at 2.25% above EIBOR, consistent with Gulf Marine Services’ existing working capital facilities.
Management said the additional liquidity will support the company’s expansion into new markets and strengthen its ability to secure and deliver offshore energy contracts. The facility is expected to be used primarily for bonds and bank guarantees, providing greater financial flexibility while avoiding a significant increase in financing costs.
Gulf Marine Services’ investment outlook continues to benefit from improving financial fundamentals, including lower leverage, sustained profitability and generally positive free cash flow generation. However, these positives are partly offset by a decline in net income during 2025 and a notable reduction in free cash flow over the same period. Technical indicators remain mixed, while valuation appears broadly in line with the market, offering limited additional upside.
More about Gulf Marine Services
Gulf Marine Services is a London-listed offshore support vessel operator established in Abu Dhabi in 1977. The company owns and operates a fleet of 15 self-propelled self-elevating support vessels, providing services to the offshore energy industry across the Middle East, Europe, the Americas and other international markets.
Its vessels support a wide range of offshore activities, including platform maintenance, well intervention, offshore wind turbine servicing, installation projects and decommissioning work. The group’s modern fleet and diversified geographic presence position it to serve both traditional oil and gas operators and the growing offshore renewable energy sector.
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