Demand for the self-propelled jack-up barges (SESV) built and maintained by Gulf Marine Services (GMS) remained solid last year, despite the fall-away in crude oil prices. As a result, net profit increased to $75.6m (£50.4m), from $69.4m a year earlier, and net operating cash-flow rose 6 per cent to $120m.
The clamour for the group's SESV fleet is reflected in a high utilisation rate of 97 per cent, and this lack of spare capacity also boosted charter rates even in the face of an unfavourable oil and gas market. The ongoing new-build programme, which will expand the fleet size by two-thirds by the end of 2016, is on schedule. There's no shortage of demand, with four contracts signed for the new-build SESVs ahead of completion. A 'large class' vessel was delivered under contract during the fourth quarter of last year, and another two vessels with contracts already in place are due for completion in the second quarter.
Gulf Marine's expansion, though obviously warranted, doesn't come cheap. The group's capital expenditure in 2014 was $141m, up from $53.5m in the previous year.
Prior to these figures, Canaccord Genuity increased its adjusted 2015 EPS forecast from 25.4¢ to 26.2¢.
| GULF MARINE SERVICES (GMS) | ||||
|---|---|---|---|---|
| ORD PRICE: | 132p | MARKET VALUE: | £461m | |
| TOUCH: | 130-132p | 12M HIGH / LOW: | 165p | 92p |
| DIVIDEND YIELD: | 1.1% | PE RATIO: | 9 | |
| NET ASSET VALUE: | 103¢ | NET DEBT: | 76% | |
| Year to 31 Dec | Turnover ($m) | Pre-tax profit ($m) | Earnings per share (¢) | Dividend per share (p) |
|---|---|---|---|---|
| 2013 | 184 | 73.3 | 22.7 | nil |
| 2014 | 197 | 80.4 | 22.1 | 1.47 |
| % change | +7 | +10 | -3 | - |
Ex-div:16 Apr Payment:12 May £1 = $1.50 | ||||
