30th Sep 2019 12:25
(Alliance News) - Gulf Marine Services PLC on Monday posted a widened interim loss and lower revenue as it reported "challenging" markets in 2019.
Revenue for the six months to June 30 was USD55.0 million, down from USD56.1 million a year ago. The firm's pretax loss for the year widened to USD15.9 million from USD2.5 million, largely due to the cost of sales rising even though revenue fell, with this up to USD40.9 million from USD34.8 million
In addition, the firm took an impairment charge of USD4.6 million in the period.
The oilfield services contractor said it is on track to meet guidance, with a target of USD6.0 million in annualised cost savings anticipated to be exceeded by the end of the year, with an improved target set at USD8.5 million of annualised savings, underpinning 2020 delivery.
"While the current financial conditions facing the group are challenging, our business is stable and demand in the Middle East, our principal market, is strengthening, as evidenced by a much stronger forward order book than twelve months ago," said Chair Tim Summers.
"We fully expect to achieve a successful outcome to our negotiations with our banking syndicate, and are committed to improving the group's financial performance over the coming years," he added.
Shares in Gulf Marine were up 6.2% at 6.00 pence in London on Monday.
By Lucy Heming; [email protected]
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