Gulf Marine Services Expands Into Africa and Latin America With New Deals

Gulf Marine Services PLC (LSE:GMS) has secured two significant contracts that signal its entry into both African and Latin American markets, advancing its strategy to broaden its global footprint.

The first contract involves deploying a recently acquired vessel on a firm 170-day charter, with additional optional periods, at favourable day rates. This agreement highlights the value of recent fleet investment and increases the company’s contracted backlog to approximately USD 666 million.

New Services Line Adds Asset-Light Growth

The second contract introduces Gulf Marine Services to third-party vessel management. Under this arrangement, the company will oversee the technical and operational management of an externally owned vessel in Africa for a one-year period.

This move represents an asset-light expansion into new services, diversifying revenue streams while complementing its core vessel chartering business. Combined with strong charter pricing, it supports management’s decision to maintain its 2026 adjusted EBITDA guidance in the range of USD 105 million to USD 115 million.

Outlook Reflects Strength With Some Headwinds

The company’s outlook is supported by improving financial fundamentals, including ongoing deleveraging, consistent profitability, and generally positive free cash flow generation.

However, these strengths are partly offset by a decline in net income during 2025 and a notable drop in free cash flow over the same period. Technical indicators remain mixed, while valuation appears moderate, limiting additional upside in the near term.

More About Gulf Marine Services PLC

Gulf Marine Services PLC is a leading provider of self-propelled, self-elevating support vessels for the offshore energy sector. Founded in Abu Dhabi in 1977 and listed on the London Stock Exchange, the company operates a modern fleet of 15 vessels.

With operational bases in the UAE, Saudi Arabia, and Qatar, it serves global clients across offshore oil and gas maintenance, well intervention, and offshore wind installation and support activities.