Gulf Marine gets capital respite until year-end after deal with lenders
Gulf Marine Services said on Friday it reached an agreement with lenders to ensure it would have continued liquidity until the end of the year, nearly a month after its top boss quit as the company warned of a shortfall in full-year profit.
The offshore oilfield services contractor, which had delayed the publication of its first-half results earlier this month as it was continuing talks with lenders, said it will announce them on Sept. 30. The agreement will provide the company with the rollover of its existing $25 million working capital facility, access to bonding facilities which will support the business until the end of 2019. Shares in the company were seen rising 5 percent, according to pre-market indicators.
Chief Executive Officer Duncan Anderson resigned after Gulf Marine warned a reassessment of its ships and contracts showed profit would fall this year. A source familiar with the matter told Reuters that Anderson, who has served as CEO for 12 years, was asked to step down.
The Abu Dhabi-based company had said a review by new finance chief Stephen Kersley of its large E-class vessels operating in Northwest Europe and the Middle East pointed to 2019 core profit of between $45 million and $48 million, below $58 million it reported last year.
The company said it was continuing talks with lenders for a “long-term solution” focused on agreeing an amendment and extension to its existing facilities by the end of 2019.
Tensions in the Gulf, a worrisome global growth outlook and uncertainty over oil prices have dampened investor confidence.