Abu Dhabi: Gulf Marine Services, listed on London Stock Exchange, posted a loss of $18.2 million (Dh66.85 million) for 2017 due to lower revenues as well as due to non-cash impairment charge of $7.3 million and offset of $15.6 million of costs relating to the debt modification, the company said on Tuesday.
The Abu Dhabi-based company which supports the offshore, oil, gas and renewable energy sectors with self-propelled self-elevating support vessels (SESVs) made a loss of $18.2 million in 2017 compared to a profit of $29.4 million in 2016.
Revenues of the company reached $112.9 million last year compared to $179.4 million during the previous year. The company will not be paying dividend for 2017 as the group focuses on reducing bank debt.
Gulf Marine Services has a fleet of 13 vessels that help in offshore oil and gas platform refurbishment and maintenance activities, offshore wind turbine maintenance work, as well as offshore oil and gas platform installation and decommissioning, among other things.
“The prolonged downturn affected both our vessel utilisation and charter rates and is reflected in significantly reduced profitability reported by GMS for 2017,” said Duncan Anderson, chief executive officer of the firm.
The company expects more activity with oil prices going up.
“We have a resilient business and a diverse business with renewables now. Oil price of $70 per barrel is a good price for us. We do see more activity in our business coming up,” he told Gulf News.
“Demand for our (self-elevating support vessels) SESVs in Saudi Arabia has risen and we expanded our operational base there during the year to support our increased activities in the country. We are also seeing increased activity in other countries in the Middle East.”
The company also sees more opportunities in offshore renewables in Europe as the sector develops. It secured two long term contracts last year.
Utilisation of core fleet of thirteen vessels was 61 per cent in 2017, according to the company.
