COMPLETED GMS ENTERPRISE COMMENCES FIRST CONTRACT

RNS Number : 3046S

Gulf Marine Services PLC

23 September 2014

 



For Immediate Release                                                                            

23 September 2014

Gulf Marine Services PLC

("Gulf Marine Services", "GMS", "the Company" or "the Group")

GMS ENTERPRISE CONSTRUCTION COMPLETED ON SCHEDULE AND

FIRST CONTRACT COMMENCED

Gulf Marine Services (LSE:GMS), the leading provider of advanced self-propelled self-elevating support vessels (SESV) serving the offshore oil, gas and renewable energy sectors, is pleased to announce that the newly-built GMS Enterprise has been completed ahead of schedule and under budget.  Having successfully completed its sea trials, the vessel has now commenced its first charter, a four-month contract for an engineering, procurement and construction (EPC) contractor working for a MENA-based national oil company (NOC), with day rates in line with those previously indicated for the region.

GMS Enterprise, a Large Class vessel, is the first of six new SESVs to be added to the Group's fleet by 2016, with the new build programme increasing the current fleet by 66% from nine to 15 vessels. 

GMS constructs its SESVs, also known as jackup barges, at its quayside yard in Mussafah, Abu Dhabi, enabling the Group to deliver high quality assets cost effectively.  The hull of the next new build, the Mid-Size Class SESV GMS Shamal, is due to arrive at the yard in Q4 2014 and is scheduled for completion in Q2 2015.  A second Mid-Size Class vessel, GMS Scirocco, will be completed in Q3 2015.  A third Mid-Size Class, an Enhanced Small Class and a further Large Class vessel are progressing as planned.

The Group's existing vessels are all currently on contracts to support brownfield oil and gas recovery, well services and maintenance work in the MENA region, and oil, gas and renewable energy-related operations in North West Europe. 

Duncan Anderson, Chief Executive Officer of GMS, said: 

"GMS Enterprise is a highly sophisticated vessel and I am pleased its construction has been delivered both ahead of schedule and under budget and that the vessel has progressed immediately to its first charter.  This demonstrates our ability to efficiently invest capital to grow our fleet and generate strong returns for shareholders.   

"Demand for our existing assets continues to be very strong with our healthy backlog of USD$ 361 million providing good visibility on future earnings.  We are also seeing interest in our new tonnage from both new and existing clients who understand our cost-effective well service and maintenance solutions." 

Enquiries

For further information please contact:

Gulf Marine Services PLC	Bell Pottinger
Duncan Anderson	Philip Dennis
John Brown	Rollo Crichton-Stuart
Anne Toomey	Tel: [phone]
Tel: [phone]

Notes to Editors:

Gulf Marine Services PLC, a company listed on the London Stock Exchange, was founded in Abu Dhabi in 1977 and has become one of the largest providers of self-propelled self-elevating support vessels (SESV) in the world.  The fleet serves the oil, gas and renewable energy industries from its offices in the United Arab Emirates, Saudi Arabia and the United Kingdom.  GMS is working worldwide, with its assets capable of serving clients' requirements in the Middle East, South East Asia, West Africa and Europe.

The Group's SESVs are four-legged vessels that move independently, with no requirement for anchor handling or tug support. They have a large deck space, crane capacity and accommodation facilities that can be adapted to the requirements of the Group's clients. These vessels support GMS' clients in a broad range of offshore oil and gas platform refurbishment and maintenance activities, well intervention work and offshore wind turbine maintenance work (which are Opex-led activities) and offshore oil and gas platform installation and offshore wind turbine installation (which are Capex-led activities).

GMS' current fleet of ten SESVs (including new build GMS Enterprise) is technically advanced and amongst the youngest in the industry, with an average age of eight years. The fleet is categorised by size into Large Class vessels (operating in water depth of up to 80m, with crane capacity of up to 400 tonnes and accommodation for up to 300 people) and Small Class vessels (operating in water depth of up to 45m, with crane capacity of up to 45 tonnes and accommodation for up to 300 people).  A third class, the Mid-Size Class vessels (operating in water depth up to 55m, with crane capacity of up to 150 tonnes and accommodation for up to 300 people) will be added to the fleet in 2015.

GMS plans to add up to five more vessels to its fleet by the end of 2016 as the Group responds to continued strong customer demand and an anticipated growing market in the foreseeable future.  

Demand for GMS' vessels is predominantly driven by their premium capabilities as well as market growth underpinned by the need to maintain ageing oil and gas infrastructure and increasing use of enhanced oil recovery techniques to offset declining production profiles.

www.gmsuae.com 

Disclaimer

The content of the Gulf Marine Services PLC website should not be considered to form a part of or be incorporated into this announcement.

 

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