Gulf Marine Services annual profits grow, FY24 outlook strong

4th Apr 2024 09:43

(Sharecast News) - Energy industry services business Gulf Marine Services said on Thursday that both revenue and profits had grown in 2023.

Gulf Marine said revenue grew 14% to $151.5m last year, driven by higher day rates and the improved popularity of its E-class and K-class barges, while net profits jumped 66% to $42.1m. Fleet use rose 6% year-on-year, allowing the firm to raise average day rates from $27,500 to $30,3000.

The London-listed firm also lowered net debt from $315.8m to $267.3m, bringing its leverage ratio down from 4.4x to 3.05x and cutting its administrative cost base as a percentage of revenue. However, GMS' finance expenses rose from $7.8m to $33.4m due to higher LIBOR and interest rates.

Chairman Mansour Al Alami said: "In 2023 our business thrived amid industry tailwinds, showcasing year-over-year growth in revenues, utilisation and day rates."

"We continue our deleveraging journey, as we spare no efforts to continue to increase shareholder value."

Looking forward, Gulf Marine, which struck a highly profitable two-phase deal last month that took its backlog to $463.0m, said it has a target capacity of 95%, of which it claims 83% has already been confirmed.

As of 1150 BST, Gulf Marine Services shares were up 7.66% at 21.16p.

Reporting by Iain Gilbert at Sharecast.com