Gulf Marine Services (GMS) H1 2024 earnings summary

Executive summary

• Revenue rose 9% year-over-year to $80.7 million in H1 2024, driven by higher average day rates and strong demand for S-Class vessels.

• Adjusted EBITDA increased 8% to $47.7 million, with margin steady at 59%.

• Net profit declined 15% to $7.4 million due to higher fair value of warrants, increased tax expense, and higher general administrative costs.

• Net leverage ratio improved to 2.62x from 3.75x year-over-year, reflecting ongoing deleveraging and debt repayments.

Financial highlights

• Gross profit margin improved to 48% (H1 2023: 47%).

• Finance expenses fell to $12.3 million (H1 2023: $17.5 million) due to lower interest rates and margin reductions.

• Basic EPS dropped to $0.68 (H1 2023: $0.82); diluted EPS to $0.63.

• Operating cash flow increased to $45.6 million (H1 2023: $42.1 million).

• Net bank debt reduced by $28.8 million to $238.5 million.

Outlook and guidance

• Adjusted EBITDA guidance for 2024 reaffirmed at $92–100 million.

• Secured backlog rose to $426.8 million (June 2023: $301.4 million), reflecting strong contract awards.

• Market demand remains robust, with new vessel supply expected to be absorbed by market growth and asset retirements from 2025–2027.