Gulf Marine Services (LSE:GMS), which operates a fleet of self-propelled, self-elevating support vessels for the offshore industry, swung to a net loss of US$14.8 million in the first half of 2026, compared with a net profit of US$3.9 million a year earlier.
Adjusted revenue fell 3% to US$84.1 million, from US$87.1 million in H1 2025, as conflict in the Gulf forced the temporary evacuation of four vessels in March, cutting an estimated US$11.6 million from revenue.
Gross profit dropped to US$2.0 million from US$35.9 million, driven largely by a US$22.7 million impairment on property and equipment tied to the regional conflict, while adjusted EBITDA declined 14% to US$43.8 million.
Average fleet utilisation fell to 75% from 87%, though average day rates rose 7% to US$37.4k on new contracts at better rates.
The company acquired a new mid-class vessel in January, partly funded by a US$37.4 million bridge loan since merged into existing bank facilities, lifting net leverage to 1.75x from 1.39x, still below its 2.0x target.
GMS entered Latin America and Africa in May, securing a contract for the new vessel and launching a third-party vessel management service, with financial impact expected in the second half.
"The first half of the year was significantly impacted by disruptions resulting from the war in the Gulf, but our core business remains strong with improved average day rates and higher backlogs," said Mansour Al Alami, Executive Chairman.
Secured backlog reached US$659 million by 17 August, up from US$606 million at the end of 2025.
The company reaffirmed full-year adjusted EBITDA guidance of US$105-115 million, assuming no return to active military action, and continues to defer its shareholder distribution policy pending greater clarity on geopolitical risk.
News Intelligence what this means for the company
Gulf Marine Services swung to a US$14.8 million net loss in H1 2026 after a US$22.7 million impairment charge and Gulf conflict forced temporary evacuation of four vessels in March, cutting an estimated US$11.6 million in revenue. The company reaffirmed full-year adjusted EBITDA guidance of US$105–115 million, contingent on no return to active military action, and reported improved day rates (up 7% to US$37.4k) and backlog growth to US$659 million by mid-August—offsetting the near-term disruption but leaving geopolitical risk unresolved.
The impairment and revenue loss are one-time shocks tied to a specific geopolitical event; the reaffirmed guidance and rising backlog suggest underlying demand remains intact. However, the company's deferral of shareholder distributions and elevation of net leverage to 1.75x (from 1.39x after the January vessel acquisition and bridge loan conversion) signal management's caution about near-term Gulf stability, making the full-year outlook contingent on an assumption—no return to active military action—that lies outside management control.
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