Gulf Marine Services PLC (AIM:GMS) has picked up a new contract for offshore energy vessels in Europe and extended two existing contracts in the Middle East, adding a total of twenty-five months to an order backlog now worth US$505 million.
Shares in GMS jumped 6% on the news, with the group adding the order backlog is the equivalent of 3.3 times last year’s revenue and 18% higher than the book’s value at the end of June.
DMS added that the strength of demand is also allowing to cut its debt faster than expected with borrowings now at US$221 million against US$267 million at the start of 2024.
Mansour Al Alami, GMS’ executive chairman, commented: “This contract not only underscores the strong demand for our versatile fleet but also reaffirms GMS's vital role in driving forward Europe's transition to clean energy through offshore wind development.
“Market fundamentals are steadily improving, allowing us to meet our deleveraging goals faster than expected.”