Gulf Marine Services (GMS), a UAE-headquartred provider of self-propelled and self-elevating support vessels for the offshore energy sector, has raised its backlog to $505 million thanks to a new contract in Europe and the extension of two existing ones in the Middle East.
GMS reported on October 10 that it had added a total of 25 months to the backlog, inclusive of optional extensions, after having secured a new long-term contract in the European offshore wind sector and the extension of two existing contracts in the Middle East.
The company’s current backlog of $505 million represents 3.3 times the 2023 revenue and a circa 18% increase over that announced at the half-year end on June 30, 2024.
“We are delighted to have been awarded this long-term contract to strengthen our footprint in the European offshore wind sector, marking a pivotal moment for GMS,” said Mansour Al Alami , GMS Executive Chairman.
“This contract not only underscores the strong demand for our versatile fleet but also reaffirms GMS’s vital role in driving forward Europe’s transition to clean energy through offshore wind development. We are also happy with the extensions obtained on two vessels as it confirms the strength of the demand in the market.”
According to Al Alami, market fundamentals are steadily improving, allowing the company to meet its deleveraging goals faster than anticipated. As of the end of September, GMS’ net debt has decreased to $221 million, down from $267 million at the start of the year and $238.5 million at the end of June.
In terms of other news coming from GMS, it is worth noting that in June the firm inked a deal for the second phase of a four-year contract for one of its vessels in the Middle East. The contract for the first phase was closed in March .
Shortly after it was reported that GMS sealed a deal with three banks to refinance its bank debt. The facility consisting of a term loan in United Arab Emirates Dirhams (AED) equivalent to $250 million and a working capital facility in AED equivalent to $50 million is to be provided by First Abu Dhabi Bank, Commercial Bank of Dubai, and HSBC Bank, each with equal participation in both financial instruments.