14th May 2021 10:56
(Alliance News) - Gulf Marine Services PLC has seen losses widen in its trading for 2020 after having to navigate the challenges posed by the coronavirus and other unexpected cost rises, it said on Friday.
The Abu Dhabi-based firm, which provides offshore oil, gas and renewables industries with support vessels, posted a widening pretax loss for the year to December 31 of USD125.0 million from USD81.8 million.
The firm was hit by a combination of unforeseen costs, including the relocation of two ships from Europe to the Middle East due to Covid, costing USD6.8 million and USD2.3 million respectively. It was also forced to spend USD87.7 million in total on seven boat impairments last year.
Revenue declined 5.7% year-on-year to USD102.5 million, from USD108.7 million in 2019.
Gulf Marine said "significant operational and financial risks experienced by all businesses across the energy sector persist", and that four vessels reported Covid outbreaks during the year. Other disruptions included temporary delays in contracts and USD2.3 million of additional costs relating to the pandemic, mainly linked to crew quarantines.
Changes to practices implemented at end of the year should minimise these costs going forward, the company said.
Looking ahead, Gulf Marine said it had secured a backlog of USD199.0 million as at May 6, down from USD240 million on March 31, 2020. Its year-to-date earnings before interest, tax, depreciation and amortisation are in line with expectations, it added.
Executive Chair Mansour Al Alami commented: "Gulf Marine Services has been able to successfully navigate the challenges of 2020 and is now well positioned for 2021 and beyond.
"We are maximising the return on our assets through improving utilisation with a reduced cost base against a backdrop of strengthening market dynamics. This, combined with improved bank facility terms, means that Gulf Marine Services is well on the way to long-term recovery and growth.
Gulf Marine is planning an equity raise of USD25 million by June 30 and a further USD50 million by December 31, 2022.
Shares were trading at 7.36 pence each in London on Friday morning, down 0.7%.
By Will Paige; [email protected]
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