UAE-based liftboat provider GMS has increased its 2019 EBITDA guidance prior to closure of 2019 accounts on December 31, 2019.
A GMS SESV / Image source GMS
To remind, the company providing self-elevating self-propelled support rigs for the offshore energy industry, in November said that on the back of recent contract awards and progress with cost cuts lead to a new EBITDA Guidance for 2019 the range of $48-50 million, with the previous being declared as $45-48 million.
Come Thursday, December 19, GMS issued another EBITDA guidance, where the range is still $48-50 million for 2019, however, at the upper end of the guidance range.
GMS said the updated EBITDA guidance reflected improved performance against the 2019 cost target.
“Initially set at $6m of annualized savings, this will now exceed $12m, comprising $5m in G&A, $6m in operating costs and $1m in capex,” GMS said.
Related: GMS CEO quits after guidance reset – 2019/08/23
As previously reported, GMS earlier this year started “a fundamental governance and management overhaul,” replacing the Chairman, CEO, the CFO, and directors – after a detailed review of the Company’s year-to-date financial performance and forecast activity levels for the fleet established that 2019 EBITDA would be lower than in 2018.
In an update on Thursday, GMS said that t he business has responded well to the new direction and revised management targets.
“All teams are focused on improved financial performance, through a combination of further cost savings, improved operational efficiency and building on recent business development success to improve vessel utilization. The negotiations with the Group’s lenders are moving forward in a constructive fashion and will be the subject of a further update in due course,” GMS said.
Tim Summers , Executive Chairman, commented: “The last twelve months have been a challenging period for GMS. However, comprehensive changes to the Board and the Senior Management have delivered a significant change in our corporate culture, with a focus on financial and commercial success. Our contract wins through the autumn show GMS is rebuilding confidence in our ability to deliver in a competitive environment, and we face 2020 from a much stronger position than 12 months ago.”
Guidance for 2020 performance will be issued in the first quarter of next year.
Offshore Energy Today Staff
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