Shares in Gulf Marine Services PLC (LON:GMS), the self-propelled jack-up barges provider, motored higher on news of a new long-term contract.
The shares, which halved in 2016, got 2017 off to a good start, rising 9.4% in the morning trading session, as the company revealed it had secured a new charter for three years (including options).
The charter is scheduled to commence early in the current quarter.
The vessel being provided by Gulf Marine will be supporting well intervention activities for a national oil company (NOC) in the Middle East and North Africa region.
"As we recently reported, we are seeing an increase in tender opportunities in the Middle East and our strategy to provide flexible and cost-effective offshore support solutions has proved pivotal in winning this long-term contract,” said Duncan Anderson, chief executive officer of Gulf Marine.
“The new charter, which together with other recent contract wins has increased our total backlog by approximately two-thirds since 1 November 2016, demonstrates that the market is showing clear signs of recovery.
“This contract win has also further strengthened our business relationship with a strategic NOC client and improved our current geographic diversity.
“We are delighted our client has again recognised the value our modern four-legged vessels bring to intensive well intervention campaigns across multiple locations."