Gulf Marine Bucks Trend to Boost Profit Amid Lower Crude Prices

BY Firat Kayakiran

(Bloomberg) — Gulf Marine Services elevated full-year revenue after a decline in crude costs boosted demand for its low-cost help vessels for offshore oil manufacturing.

It prices $40,000 to $50,000 a day to constitution the vessels the Abu Dhabi-based firm builds at its personal shipyard within the emirate, Chief Executive Officer Duncan Anderson stated in an interview on Tuesday. That compares with each day charges of $75,000 to $80,000 for the drilling rigs that carry out related duties in sustaining offshore wells.

“In the current market, the clients are looking for more cost-effective solutions to supplant more expensive units,” Anderson stated. “We continue to see demand for the units” for 2015 and 2016, he stated.

Gulf Marine has already acquired two new vessels as the corporate expands its fleet by two-thirds to fifteen by 2016 to fulfill demand, stated Anderson, who doesn’t anticipate oil costs to stay low for greater than two years. Focused on the Middle East, North Africa and northwest Europe, Gulf Marine reported a 9 % improve in 2014 revenue to $75.6 million earlier at present.

“As the oil price driven maelstrom dragged down the European oil services late in 2014, GMS’s long-term contracts, strategic and geographic focus and business model based solely on cost saving for its clients, allowed the company to stand tall, safe from the choppy waters below,” Mick Pickup, an analyst at Barclays Capital, wrote in a observe to traders.

Gulf Marine introduced a remaining dividend of 1.06 pence (1.64 cents) a share, bringing the full for the yr to 1.47 pence.

Gulf Marine shares rose 1.5 % to 132 pence as of 10:15 a.m. in London.