07.03.2025
Staying within the marine sector, but perhaps not so global, is this leading provider of self-propelled, self-elevating support vessels for the offshore energy sector.
Recent contract extensions have reflected continued demand for the GMS vessels, together with the overall strength of the market and the ongoing confidence of its operating partners in the service that GMS provides.
At the end of last year, the group successfully completed its debt refinancing on far better terms, as it goes forward and expands.
At the same time the group upped its guidance for its 2024 and 2025 trading years, with Chairman Mansour Al Alami stating that:
"Strong demand for our vessels continues to drive solid results.
Both forecasted utilisation rates and contracted daily charter rates will enable us to achieve the above guidance."
Analysts Andy Smith and Ashley Kelty, at Panmure Liberum, rate the group’s shares as a Buy, with a Target Price of 30p.
They are looking for the group’s 2024 Finals, due shortly, to show a lift in sales to end-December to $166.0m ($152.0m), with adjusted pre-tax profits more than trebling to $37.5m ($12.1m).
The group last announced its Final Results on 4th April 2024, which suggests that its 2024 Results could be announced very shortly.
This morning it has been announced that Bank of America Corporation, on behalf Merrill Lynch International, has declared an initial 7.81% stake in the group, some 83.58m GMS shares.
Having been up to 24.60p in April last year, the group’s shares have recently drifted back to 16.74p, which I would consider is far too low a rating, especially in front of the company announcing good 2024 numbers.
An early move back up to trade the 18p/20p range is very possible.
(Profile 30.11.23 @ 13p set a Target Price of 16p*)
(Profile 22.01.24 @ 15.95p set a Target Price of 19.50p*)
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