Banking Update

RNS Number : 9207N

Gulf Marine Services PLC

27 September 2019

 

27 September 2019

Gulf Marine Services PLC

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

Banking Update

GMS announces that it has signed a formal waiver agreement with its banks relating to the covenants to be tested with reference to the Company's 30 June 2019 half year financial results.   The agreement will also provide the Company with the rollover of its existing US$ 25 million working capital facility, as well as access to bonding facilities that will underpin liquidity and support the growth of its business, in each case until the end of 2019.  The Company now has until 30 September 2019 to complete the final administrative conditions precedent for that agreement. 

The Group is continuing its dialogue with its lenders on a long-term solution to its capital structure, which is focused on agreeing by the end of 2019 an amendment and extension to its existing facilities, comprising the term loan, the working capital facility and the performance bond facility.  This will address the Group's future loan repayment profile, as well as continued access to working capital and performance bonds, and its financial covenant tests going forward.

The Company's half year financial results will be announced on Monday 30 September 2019.

Tim Summers, Executive Chairman, said: 

"This agreement is an important step towards providing a long-term sustainable financing structure for the business as we continue to deliver our strategic repositioning plan."

This announcement contains inside information and is provided in accordance with the requirements of Article 17 of the EU Market Abuse Regulation.  

Steve Kersley

Chief Financial Officer (responsible for arranging the release of this announcement)

Gulf Marine Services PLC

27 September 2019

Enquiries

For further information please contact: 

Gulf Marine Services PLC Tim Summers Executive Chairman Tony Hunter Company Secretary Tel: [phone] Anne Toomey Investor Relations Tel: [phone]

Brunswick   Patrick Handley - UK Will Medvei - UK Tel: [phone] Jade Mamarbachi - UAE 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 a world leading provider of advanced self-propelled self-elevating support vessels (SESVs).  The fleet serves the oil, gas and renewable energy industries from its offices in the United Arab Emirates, Saudi Arabia and the United Kingdom.  The Group's assets are capable of serving clients' requirements across the globe, including those in the Middle East, South East Asia, West Africa, North America, the Gulf of Mexico and Europe.

The GMS fleet of 13 SESVs is amongst the youngest in the industry, with an average age of eight years. The vessels support GMS's 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), as well as offshore oil and gas platform installation and decommissioning and offshore wind turbine installation (which are capex-led activities).

The SESVs are categorised by size - K-Class (Small), S-Class (Mid) and E-Class (Large) - with these capable of operating in water depths of 45m to 80m depending on leg length.  The vessels are four-legged and are self-propelled, which means they do not require tugs or similar support vessels for moves between locations in the field; this makes them significantly more cost-effective and time-efficient than conventional offshore support vessels without self-propulsion. They have a large deck space, crane capacity and accommodation facilities (for up to 300 people) that can be adapted to the requirements of the Group's clients.

Gulf Marine Services PLC's Legal Entity Identifier is 213800IGS2QE89SAJF77

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.

Cautionary Statement

This announcement includes statements that are forward-looking in nature. All statements other than statements of historical fact are capable of interpretation as forward-looking statements. These statements may generally, but not always, be identified by the use of words such as 'will', 'should', 'could', 'estimate', 'goals', 'outlook', 'probably', 'project', 'risks', 'schedule', 'seek', 'target', 'expects', 'is expected to', 'aims', 'may', 'objective', 'is likely to', 'intends', 'believes', 'anticipates', 'plans', 'we see' or similar expressions. By their nature these forward-looking statements involve numerous assumptions, risks and uncertainties, both general and specific, as they relate to events and depend on circumstances that might occur in the future.

Accordingly, the actual results, operations, performance or achievements of the Company and its subsidiaries may be materially different from any future results, operations, performance or achievements expressed or implied by such forward-looking statements, due to known and unknown risks, uncertainties and other factors. Neither Gulf Marine Services PLC nor any of its subsidiaries undertake any obligation to publicly update or revise any forward-looking statement as a result of new information, future events or other information. No part of this announcement constitutes, or shall be taken to constitute, an invitation or inducement to invest the Company or any other entity, and must not be relied upon in any way in connection with any investment decision. All written and oral forward-looking statements attributable to the Company or to persons acting on the Company's behalf are expressly qualified in their entirety by the cautionary statements referred to above.

 

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