Gulf Marine Services - further contract adds to growing Order Book,

Mark Watson-Mitchell - 05.01.2026

This morning Gulf Marine Services (LON:GMS), a leading provider of self-propelled, self-elevating support vessels to the offshore energy industry, has announced a two-year extension (comprising one year firm and one year option) to an existing contract for one of its mid-size vessels operating in the GCC.

This extension relates to a separate contract and a different vessel from the contract extension announced last Tuesday.

Management Comment

Chairman Mansour Al Alami stated that:

"This contract extension strengthens our backlog and highlights our customers' continued confidence in GMS's operations.

It follows several new contracts and extensions announced in the last two weeks, reflecting the ongoing strong demand across our markets.

As we enter 2026, we do so with positive momentum in our core regions."

Broker's View

Analyst Daniel Slater, at Zeus Capital, has today stated that:

"Another new contract continues to underpin revenue visibility.

GMS has announced another new contract, as part of a recent string of new awards.

This one is a two-year extension (one year firm, one year option) to an existing contract on one of the company’s mid-size S-class vessels operating in the Middle East.

The company gave an updated order book number of US$607m last week, and today’s contract will further add to this.

GMS’s order book continues to represent very substantial revenue visibility for the company, currently well over 3x our 2025 revenue forecast, supporting forward cash flows."

My View

I really do like this little group - its potential is massive and its shares at 18.90p are undervalued.

(Profile 30.11.23 @ 13p set a Target Price of 16p*)

(Profile 22.01.24 @ 15.95p set a Target Price of 19.50p*)

(Profile 30.12.25 @ 18.8p set a Target Price of 23p)