Gulf Marine Services (GMS) Investor presentation summary

Business overview and strategy

• Operates 13 self-propelled, self-elevating support vessels, serving offshore oil, gas, and renewables in the Arabian Gulf and North Sea.

• Fleet has an average age of 14 years, with an expected useful life of over 40 years.

• Maintains long-term contracts with blue-chip clients, including national and international oil companies and EPC contractors.

• Balanced geographic revenue distribution, with core operations in MENA and Western Europe.

• Demonstrates commitment to ESG standards and safety, with no recordable injuries in 2024.

Financial performance and outlook

• Achieved adjusted EBITDA of $76.1m in Q3 2024, with a margin of 60%.

• Net debt/EBITDA reduced to 2.3x in Q3 2024, down from 8.1x in 2020.

• Backlog as of September 30, 2024, stands at $465.5m, about 3x 2023 revenue, ensuring strong revenue visibility.

• 2024 EBITDA guidance is $96m–$101m, with continued deleveraging expected.

• Refinancing agreement reached for a five-year term loan and $50m working capital facility.

Operational efficiency and cost management

• Sustained reduction in operating costs as a percentage of revenue, improving margins.

• Operating costs and G&A as a percentage of revenue have steadily declined since 2019.

• Project execution risk is largely transferred to clients, minimizing exposure to liquidated damages.

• Vessels are chartered on a time basis, with daily rates and maintenance handled internally.