Gulf Marine Services Shares Rise Despite Swing to H1 Net Loss

Gulf Marine Services (LON: GMS), which charters self-propelled jack-up barges to offshore energy operators, swung to a $14.8m net loss in the first half of 2026, from a $3.9m profit a year earlier, after war in the Gulf forced it to evacuate vessels. Shares rose in response.

The stock was up 3.56% at 19.18p by mid-morning in London, having touched 19.20p, against Friday’s close of 18.52p — a firm reaction to results that on their face showed a swing into loss.

GMS’s interim results, published this morning, showed the loss was driven by a $22.7m impairment charge and disruption after four vessels were evacuated from a Gulf country in early March as a precaution against regional conflict. All four were back on hire by mid-June, but the episode cut average fleet utilisation to 75% from 87% a year earlier, at an estimated cost of $11.6m in lost revenue.

Despite that hit, underlying trends held up: average day rates, the price charged per vessel per day, rose 7% to $37.4k, and the secured order backlog climbed to a record $659m as at 17 August, from $606m at the end of December. Net bank debt rose to $185.4m, taking leverage to 1.75x, still below the group’s 2.0x target. On that basis, management reaffirmed full-year adjusted EBITDA guidance of $105-115m, provided the Gulf conflict does not escalate again.

Executive Chairman Mansour Al Alami said: “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… performance is expected to rebound in the second half of 2026.” He added that the outlook assumes no return to active military action in the region.

GMS’s shareholder distribution policy remains deferred pending greater clarity on Gulf geopolitical risk, leaving that conflict as the key swing factor for the second half.