Gulf Marine Services (GMS) Investor presentation summary

Company overview and business model

• Established in 1977, headquartered in Abu Dhabi, and listed on the London Stock Exchange, operating 13 self-propelled, self-elevating support vessels with an average fleet age of 14 years and a useful life of 40+ years.

• Provides services to oil, gas, and renewables sectors, with core operations in MENA and Western Europe, and a balanced geographic revenue distribution.

• Vessels are chartered on a time basis, with project execution risk and most operational risks assumed by clients, minimizing company exposure.

• Long-term client relationships with major oil companies, EPC contractors, and European power companies, with contracts ranging from months to years.

• Demonstrates strong ESG commitment, safety record, and ongoing investment in environmental initiatives.

Financial performance and deleveraging

• Achieved significant deleveraging, reducing net debt/EBITDA from 8.1x in 2020 to 2.6x in H1 2024, with net debt at $238.5m.

• Adjusted EBITDA margin improved to 59% in H1 2024, with sustained reduction in operating and overhead costs as a percentage of revenue.

• Backlog reached $464.9m as of September 2024, equivalent to approximately 3x 2023 revenue, ensuring strong revenue visibility.

• Dayrates have not returned to 2015 peaks, but utilization rates are above 90%, supporting profitability.

• Refinancing agreement reached with a club of three lenders, offering improved terms and supporting future growth.

Market outlook and growth opportunities

• Offshore energy investment is expected to rise, driven by both oil & gas and offshore wind, with wind likely to account for 45% of offshore spending over 2024-27.

• Offshore oil & gas production is projected to grow 13% globally by 2030, with the Middle East leading at 29% growth.

• The company is well positioned to benefit from a recovering oil & gas market and the expanding offshore wind sector.

• Plans to continue deleveraging, target net leverage of 2.3–2.4x by year-end, and explore growth avenues amid asset shortages.

• Backlog provides clear revenue visibility for the next three years, supporting ongoing value creation for shareholders.