logo
Share SHARE
FONT-SIZE Plus   Neg

Gulf Marine Services Plans To Float On LSE - Quick Facts

Gulf Marine Services Plc., operator of one of the largest independent self-propelled Self Elevated Support Vessel or "SESV" fleets globally with a focus on the MENA region and Northwest Europe, announced Monday that it plans to proceed with an initial public offering. It also intends to apply for admission of its ordinary shares to the premium segment of the Official List of the UK Listing Authority and to trading on the main market of the London Stock Exchange.

Gulf Marine Services or GMS operates a core fleet of nine SESVs which are four-legged self-propelled vessels with a large deck space, crane capacity and accommodation facilities that can be adapted to the requirements of the Company's clients. GMS has been operating since 1977 and was acquired by its current shareholders in 2007.

The company services a blue-chip client base through long-term contracts, with an average current contract duration of 2.8 years as at 31 December 2013, including client options to extend, and with an average utilisation of 90% from 2008-2013. The Company has a current order book of $434 million including options to extend.

The company said it plans to add up to a further six vessels to its fleet over the next three years as the company continues to target long term client contracts and to pursue strategies to expand its market positions.

Revenues grew from $106.9 million in 2011 to $184.3 million in 2013, representing a CAGR of 31.3%.

From 2014 onwards, the company plans, subject to available distributable profits and shareholder approval, to pay annual dividends based on an initial targeted payout ratio of 10 per cent of the Company's consolidated post-tax profit from its ongoing business.

The company said it expects that net proceeds from the issue of New Shares to the company pursuant to the Offer will be $100 million. It plans to use the proceeds to purchase the Keloa (a Small vessel currently leased by GMS, which GMS has the option to purchase) for $37.5 million and to repay about $20 million in existing shareholder loans, which represents all shareholder loans currently outstanding. The remaining net proceeds will be used, together with existing committed bank facilities and cash generated from operations, to fund GMS's new-build programme.

Gulf Capital, one of the leading alternative asset management firms in the Middle East, through its subsidiaries, Green Investment Commercial Investments LLC and Ocean Investments Trading LLC, Horizon Energy LLC and Al Ain Capital LLC (together, the "Selling Shareholders") are each expected to sell a proportion of their shareholding in the Offer.

Each of the Company, its Directors, the Selling Shareholders and certain other senior management of the Group will agree to customary lock-up arrangements in respect of their holding of Shares for a specified period of time following Admission.

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Quick Facts

Editors Pick
Federal Aviation Administration said several pilots complained about pointing of strong green laser beams at planes flying over Long Island. The location was around Farmingdale, during 9.30 pm and 10 pm. Searches are on to locate the exact source of the laser beam. The Federal official suspects that the beam came from a hand-held device. Discount retailer Big Lots, Inc. Friday reported an increase in income from continuing operations for the first quarter, from last year. The company also registered a surge in net income particularly as it had carried a loss from discontinued operations last year. Taco Bell, a division of Yum! Brands Inc, is planning to test delivery of food items on college campuses, the Street reported. The move comes at a time the fast food chain seeks to leverage demand for its popular breakfast and dinner items.
comments powered by Disqus
Follow RTT