11th Sep 2019 11:59
(Alliance News) - Shares in Gulf Marine Services PLC plummeted Wednesday after its interim results were delayed amid ongoing discussions with lenders.
The company although emphasised that trading remained in line with previously lowered forecasts.
Shares in Gulf Marine were 18% lower at 5.97 pence in London on Wednesday.
Gulf Marine originally anticipated delivering its results for the six months ended June on Wednesday. It now expects to have them released by the end of September.
The engineering support vessel provider said the delay was solely due to "ongoing discussions" with its banking syndicate. In particular, this related to one lender and the ongoing access of Gulf Marine to one of its working capital facilities which provide "essential short-term liquidity."
In August, Gulf Marine warned it would breach its banking covenant at an upcoming testing date.
"These discussions require the company to obtain further information to finalise its financial statements and for its auditors to complete their review," Gulf Marine said in a statement. "The company continues to seek to establish an appropriate, long-term sustainable capital structure with its lenders."
Despite this, Gulf Marine emphasised its accounts are at an "advanced stage" and that there had been no change to its trading update provided in August.
In late August, Gulf Marine reduced its annual earnings forecast.
For 2019, Gulf Marine predicts earnings before interest, taxes, depreciation & amortisation to be between USD45 million and USD48 million. This was up to 22% lower than the USD58 million reported in 2018.
Gulf Marine previously forecast that 2019 Ebitda would be broadly unchanged from 2018.
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Gulf Marine Services