GMS inks new vessel deals as market tightens

Gulf Marine Services (GMS), a provider of self-propelled, self-elevating support vessels for the offshore oil, gas and renewables industries, has won a new contract for one of its large-size class vessels and a contract extension for one of its mid-size class vessels.

GMS reported on Thursday that the 12-month contract was due to start at the end of December 2021, following the completion of the vessel’s existing contract. The contract is for an E Class vessel with an EPC customer in the Middle East and North Africa (MENA) region.

Furthermore, GMS confirmed that a NOC customer had decided to exercise its extension option for an S Class Vessel. Therefore, a two-year extension option has been exercised for an existing contract, committing the vessel until the end of 2023.

Mansour Al Alami, GMS Executive Chairman, commented: “The award of these two contracts, one of which at a significantly higher rate than its current contract, reinforce the point that we are seeing a tightening of the market and demand for our vessels continues to improve.”

The GMS fleet consists of 13 SESVs, which are categorised by size – K-Class (Small), S-Class (Mid), and E-Class (Large).

“These awards, together with other contracts already secured for 2022 and a strong pipeline of additional opportunities, increases our confidence that the financial performance of the company will see further improvement into next year,” added Al Alami.

In June this year, all 13 vessels in the GMS fleet were under contract following the award of three new contracts with a combined duration of 31 months.