Gulf Marine Services PLC (GMS), a prominent provider of self-propelled, self-elevating support vessels for the offshore sector, has released its interim results for the first half of 2026. The report reflects a challenging period for the company, primarily influenced by geopolitical tensions in the Gulf region.

Financial Overview

For the six-month period ending 30 June 2026, GMS reported adjusted revenue of US$ 84.1 million, a decrease of 3% compared to US$ 87.1 million in the same period of the previous year. This decline is attributed to the adverse effects of the ongoing conflict in the Gulf, which led to the temporary evacuation of four vessels in early March 2026. Although these vessels were back on hire by mid-June, the estimated revenue loss due to the conflict was approximately US$ 11.6 million.

Adjusted EBITDA also saw a significant decline, dropping 14% to US$ 43.8 million from US$ 50.8 million in H1 2025. The gross profit plummeted to US$ 2.0 million, a stark contrast to US$ 35.9 million in the previous year, largely due to an impairment loss on property and equipment linked to the regional instability.

Sponsors

Operational Highlights

The average fleet utilisation rate fell to 75%, down from 87% in H1 2025. This decrease was not solely due to the conflict; it was also impacted by the planned preparation of a large vessel in Europe for a new contract. Despite the challenges, average day rates improved by 7%, reaching US$ 37.4k, up from US$ 35.1k, thanks to new contracts secured at more favourable rates.

In January 2026, GMS expanded its fleet by acquiring a new mid-class vessel, bringing the total number of vessels operated to 15. This acquisition was partially financed through a US$ 37.4 million bridge loan, which was later integrated into existing bank facilities. As a result, the net leverage ratio increased slightly to 1.75x as of 30 June 2026, still below the Group’s target of 2.0x.

Geopolitical Impact and Future Outlook

The ongoing geopolitical situation has necessitated a cautious approach to financial management. GMS reported a net loss of US$ 14.8 million for H1 2026, a significant downturn from a net profit of US$ 3.9 million in H1 2025. This loss was primarily driven by the impairment loss and reduced EBITDA, although it was partially offset by lower tax expenses and changes in the fair value of derivatives. On an adjusted basis, net profit fell to US$ 6.9 million from US$ 14.1 million year-on-year.

Looking ahead, GMS remains optimistic about its financial recovery in the latter half of 2026. The company has set a target for adjusted EBITDA in the range of US$ 105-115 million, contingent on the geopolitical situation stabilising and not reverting to active military conflict. The anticipated recovery is expected to be bolstered by the company’s expansion into Latin America and the full operational deployment of an E-class vessel in Europe, which began in April 2026.

Market Expansion and Strategic Initiatives

In early May 2026, GMS announced its entry into new markets, specifically Latin America and Africa. The company has already secured contracts for its new mid-class vessel in Latin America, while the African market presents a new revenue stream through third-party vessel management services. The financial benefits from these new contracts are expected to materialise in the second half of 2026, further supporting GMS’s recovery strategy.

As of 17 August 2026, GMS reported a secured backlog of US$ 659 million, an increase from US$ 606 million at the end of 2025. This growth reflects additional contract awards and extensions, highlighting the ongoing demand for GMS’s vessels across various markets.

Management Commentary

Mansour Al Alami, Executive Chairman of GMS, commented on the results, stating, “The first half of the year was significantly impacted by disruptions resulting from the war in the Gulf, but our core business remains strong with improved average day rates and higher backlogs. Supported by expansion in Latin America alongside fully operational assets deployed in Europe, performance is expected to rebound in the second half of 2026. This expectation assumes that the Gulf region will not return to active military actions.”

In conclusion, while Gulf Marine Services has faced considerable challenges in the first half of 2026 due to geopolitical tensions, the company is strategically positioned for recovery and growth in the latter half of the year. With a focus on market expansion and operational efficiency, GMS aims to navigate through these turbulent times and emerge stronger in the offshore support vessel sector.