07.01.2025
Gulf Marine Services – ‘the man who bought London’ has increased his stake in this ‘in demand’ Abu Dhabi-based offshore energy services supplier, will he add further to his holding? Shares 15.60p, Brokers TP 30p
The former Prime Minister of Qatar, Hamad bin Jassim bin Jaber Al Thani, is believed to have increased his stake in Gulf Marine Services (LON:GMS), one of our 2025 selections.
‘HBJ’ who is believed to own over 3% of Deutsche Bank, has been referred to as ‘the man who bought London’ following the Sovereign Wealth Fund in Qatar that he was running having bought Harrods, the Shard, and amongst many other UK investments also being a partner in the development of One Hyde Park.
Known to be one of the wealthiest men in Qatar, HBJ is the owner of the widely circulated newspaper al-Watan, one of Qatar’s three main publishing companies.
He has been behind recent moves to take over Manchester United and is believed to still be very interested in buying into the football club.
HBJ’s stake in Gulf Marine has increased from 3.63% to 5.05% in the last fortnight, following Seafox International, the former biggest shareholder in GMS, carrying out a share distribution to its own shareholders of its stake in the service provider.
Seafox, some years ago, built up a major investment position in GMS, with the intention of mounting a bid for the competitor to its own ‘jack-up offshore support services’ business.
It failed in its attempt to merge both companies and subsequently agreed to certain measures that have seen a gradual reduction in its domineering holding, without impacting either Seafox or GMS in the process.
From just under 30% of the GMS equity, Seafox now owns 7.79% of the GMS equity following the share distribution of GMS shares to its own shareholders.
This is how HBJ’s Imperial Financial Holdings Ltd was able to increase its position in the GMS equity.
Gulf Marine Services, was set up in Abu Dhabi in 1977 and has become a world-leading provider of advanced self-propelled self-elevating support vessels.
The fleet serves the offshore energy industries from its offices in the United Arab Emirates, Saudi Arabia, and Qatar.
The group's assets are capable of serving clients' requirements across the globe, including those in the Middle East, South East Asia, West Africa, North America, the Gulf of Mexico, and Europe.
At the end of last year it announced that it had successfully completed the refinance of its debt, with CFO Alex Aclimandos stating that:
"We are very happy to have secured this deal as it lowers our costs of borrowing and gives us more flexibility on capital allocation, reflecting the trust of the lenders."
While Chairman Mansour Al Alami stated that:
"This new deal will allow us to proceed with our deleveraging plans and to continue to move value from lenders to shareholders."
The £166.5m capitalised group, whose shares are now just 15.60p, for the year to end-December, the group could see $168.4m sales, and adjusted pre-tax profits of $43.6m, worth 3.3c per share in earnings.
This year, that could be $176.4m revenues, $55.0m profits and 4.3c per share in earnings.
The shares have been valued at 30p by brokers, thereby offering massive upside in price.
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