Premier Miton: Gulf Marine recovers from near-death experience
Gulf Marine Services (GMS) continues to recover from its ‘near-death experience’ and the risks are reducing, says Premier Miton manager Matthew Tillett.
He holds the owner of a fleet of lift boats in his £202m Premier Miton UK Value Opportunities fund. The fund flagged its place in energy services, specialising in the provision of support vessels to the offshore oil, gas and wind industries.
‘Following a near death experience during the industry downturn in the 2010s followed by the pandemic, a new management team took over in 2021 and have since improved operations and radically reduced the financial leverage, which we expect to reduce to 2 times Ebitda this year,’ said Tillett.
This recovery means the financial risk is ‘therefore much reduced’ and Tillett sees a ‘high chance of earnings upgrades over the coming one-to-two years’, helped by the replacing of current contracts with new ones at higher day rates for its fleet hire.
Shares in Gulf Marine were trading down 2.1% at 18.1p on Friday afternoon, but have risen nearly 20% year to date. Premier Miton: Gulf Marine recovers from near-death experience
Gulf Marine Services (GMS) continues to recover from its ‘near-death experience’ and the risks are reducing, says Premier Miton manager Matthew Tillett.
He holds the owner of a fleet of lift boats in his £202m Premier Miton UK Value Opportunities fund. The fund flagged its place in energy services, specialising in the provision of support vessels to the offshore oil, gas and wind industries.
‘Following a near death experience during the industry downturn in the 2010s followed by the pandemic, a new management team took over in 2021 and have since improved operations and radically reduced the financial leverage, which we expect to reduce to 2 times Ebitda this year,’ said Tillett.
This recovery means the financial risk is ‘therefore much reduced’ and Tillett sees a ‘high chance of earnings upgrades over the coming one-to-two years’, helped by the replacing of current contracts with new ones at higher day rates for its fleet hire.
Shares in Gulf Marine were trading down 2.1% at 18.1p on Friday afternoon, but have risen nearly 20% year to date.
