GMS nets two contract extensions with higher rates

Gulf Marine Services (GMS), a provider of self-propelled, self-elevating support vessels for the offshore oil, gas and renewables industries, has been awarded two contract extensions with increased day rates for its small-size class and mid-size class vessels.

GMS announced the two contract extensions with improved day rates on Thursday. The company stated that the extension period on both vessels would start on 1 January 2022. The two vessels categorised by size fall into the group of K Class and S Class vessels, respectively.

Mansour Al Alami, GMS Executive Chairman, commented: “The two contract extensions, on improved rates, a signal that the market for our vessels, particularly in MENA continues to tighten and that clients are taking action to ensure they have vessel availability to support their ongoing operations.”

This is in direct continuance of the existing contract. The extension will run for 12 months on the K Class and 24 months for the S Class vessel. The statement confirms that both vessels are currently doing work for a NOC client in the Middle East and North Africa (MENA) region.

“These awards further increase our confidence that the financial performance of the company will continue to improve in 2022 and beyond,” added Al Alami.

A new contract and an extension, which GMS won last month for one of its large-size class vessels and for one of its mid-size class vessels, seem to support Al Alami’s hopes for a future financial boost.