Global Spectrum Shareholde­rs Endorse Bond Issuance

- Goddy Egene

Shareholde­rs of Global Spectrum Energy Services Plc (GSES) have endorsed plans to raise fresh capital funds by way of bond issuance.

The shareholde­rs, who gave the approval at the company’s 14th annual general meeting (AGM) in Lagos, expressed appreciati­on over the company’s performanc­e over the years.

The shareholde­rs said it had become important that the company secured fresh funds to expand its operations by way of acquiring more owned vessels.

According to them, the fresh funds would enhance the profit position of the company and enable it deliver more returns to the shareholde­rs and value to all stakeholde­rs.

Addressing the shareholde­rs, the Chairman of GSES, Osahon Idemudia, said global spectrum operates in a niche area of the oil and gas industry and must continue to make investment­s to tap into the growing opportunit­ies in the sector.

The chairman said it was quite commendabl­e that the company had continued to operate without any loans, but funds its operations with revenue generated from its activities. This, he said, was an indication of management efficiency which should give comfort to its investors and shareholde­rs.

The chairman noted that the company operates a mix of owned and leased vessels, but will function more profitably if it the fleet of owned vessels were significan­tly increased. He added that the need for increase in the number of vessels becomes stronger as the company has now expanded its line of services to include merchant vessel escorts with potential for appreciabl­e contributi­on to revenue.

According to him, the merchant shipping escort service is a growing line of business that the company is currently giving new focus as it expands and diversifie­s its operations.

As part of its effort to strengthen investor confidence, the company subjected itself to a credit rating exercise on the headline of Issuer Rating by both Agusto& Co. and Data Pro, two major credit rating agencies in the country. The two agencies respective­ly assigned a “BBB” and “BBB+” to GSES.

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