Gulf Marine Services (GMS) H2 2024 earnings summary

Executive summary

• Achieved 10% revenue growth to US$167.5m, driven by higher day rates and strong operational efficiency.

• Adjusted EBITDA rose 15% to US$100.4m, with margin up to 60%.

• Net profit was US$38.3m, slightly down due to lower impairment reversals and higher tax.

• Net leverage reduced to 2.0x (from 3.05x), with net bank debt down to US$201.2m.

• Secured backlog reached US$570m as of April 2025, supporting future earnings visibility.

Financial highlights

• Revenue increased 10% year-over-year to US$167.5m, mainly from higher average day rates (US$33.1k, up 9%).

• Adjusted EBITDA grew to US$100.4m (2023: US$87.5m), margin improved to 60%.

• Net profit for the year was US$38.3m (2023: US$42.1m), impacted by lower impairment reversals and higher tax.

• Finance expenses dropped 25% to US$23.5m due to lower debt and refinancing.

• Net bank debt reduced to US$201.2m (2023: US$267.3m).

• Underlying G&A as % of revenue decreased to 6.8% (2023: 7.1%).

Outlook and guidance

• 2025 adjusted EBITDA guidance set at US$100–108m.

• Expect continued improvement in day rates and high vessel demand.

• Targeting 96% utilisation for 2025, with secured day rates already 6% above 2024 levels.

• Dividend policy announced: 20–30% of annual adjusted net profit, subject to covenants.