Gulf Marine Services – more good news, order book stretching as its prospects grow, shares 22.20p, TP 32p

Mark Watson-Mitchell – 28.01.2026

The business of Gulf Marine Services (LON:GMS) keeps expanding.

The leading provider of self-propelled, self-elevating support vessels to the offshore energy industry, has this morning announced that it has received a variation order from a major National Oil Company (NOC) in the Middle East for extension to an existing contract for two of its vessels, to provide for up to an additional six years of contract duration across the two vessels, including optional periods.

That helps to add to its operating backlog of business, now up to $700m.

Management Comment

Chairman Mansour Al Alami stated that:

"We are very pleased with this contract extension.

It shows continued demand for our vessels in the Middle East.

With this strengthened backlog, investors can see clear visibility into our performance for the coming years.

It also positions us well to grow and deliver value to our shareholders."

The Business

Founded in Abu Dhabi in 1977, Gulf Marine Services has subsequently become a world‐leading provider of advanced self‐propelled self‐elevating support vessels (SESVs).

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.

The GMS fleet of 15 SESVs is amongst the youngest in the industry.

The vessels support GMS's clients in a broad range of offshore platform refurbishment and maintenance activities, well intervention work, and offshore wind turbine maintenance work, as well as offshore platform installation and decommissioning and offshore wind turbine installation.

Broker’s View

Daniel Slater, analyst at Zeus Capital, has a valuation of 32p on this group’s shares.

He noted that:

“Going forward we continue to look for new contracts and delivery of revenues, further news on the new vessel acquisition and the timing of putting that to work, and, alongside renewed deleveraging, commencement of shareholder returns in the coming months.

GMS has significantly grown its order book in recent months.

This stood at US$457.5m at the end of September 2025, since when GMS has made five new contract award/extension announcements (including today’s), taking the order book to US$540m as of mid-December, US$607m as of late December, and now US$0.7bn based on the award announced today.

The company is also now looking to begin returning value to shareholders by establishing dividends and/or buybacks in the coming months, alongside potentially adding further vessels.

In anticipation of more new contract wins, potential further guidance upgrades, and periodic financial results to highlight all this to the market, we have a positive outlook for the shares and value them at 32p.”

My View

As I have written before – the good news keeps on coming from GMS.

I remain a big fan of this £256m capitalised group.

It has mega-clients and massive prospects in an ever-expanding market, in which it is a leader.

Its shares, at 22.20p, continue to offer an attractive upside.

(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*)