Gulf Marine Services reassessing profit guidance amid Middle East uncertainty

(Sharecast News) - Shares in Gulf Marine Services dropped sharply on Tuesday after the UAE-based offshore services firm said it was reassessing its 2026 guidance as a result of the Middle East conflict. The company, which supports various offshore energy and construction activities with self-propelled, self-elevating vessels, said its previously issued forecast for adjusted EBITDA of $105m-115m was being reviewed "due to the ongoing geopolitical situation in the Gulf region".

Nevertheless, the firm said it expects a continued improvement on average day rates as legacy contracts are being renewed at higher day rates.

GMS reiterated its 2030 target of doubling 2024 adjusted EBITDA, equating to around $201m.

For 2025, the company increased adjusted EBITDA by 12% to $112.9m after a 12% increase in revenues to $151.6m. The improvement in the top line was mainly driven by the operation of an additional leased large vessel for eight months and increased average day rates across the fleet by 11%, which offset the impact of lower average fleet utilisation.

However, the company said that it had chosen not to pay a dividend again due to the ongoing geopolitical uncertainty, despite its shareholder distribution policy to allocate 20%-30% of annual adjusted net profit distributions to shareholders.

"While rewarding our shareholders remains a priority, the ongoing geopolitical situation in the Gulf region has already impacted our operations. As the duration of this situation remains unknown, the total extent of this disruption cannot yet be fully quantified," GMS said.

The stock was down 6.5% at 18.84p by 1121 BST.

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