Offshore vessel provider Gulf Marine Services (GMS) made an adjusted loss of $20m in 2019, compared with an adjusted loss of just over $5m the previous year.
Earnings before interest, tax, depreciation and amortisation (EBITDA) stood at $51.4m, down from $58m in 2018, mainly because of a reduction in average charter rates as legacy contracts have expired, to be replaced by new contracts negotiated in current market conditions.
GMS said average utilisation was 69%, the same as in 2018.
However, it added that there has been a reduction in utilisation of its most profitable E-Class vessels, offset by increases in utilisation of the remainder of the fleet.
“This put further pressure on overall margins and therefore EBITDA,” the company said.
Revenue fell by 12% to $108.7m last year from $123.3m in 2018, reflecting lower rates and shifts in the utilisation mix.
GMS’s actual loss for the year was $85.5m, which includes a non-cash impairment charge on property, plant and equipment of $59.1m and restructuring costs of $ 6.3m.
There were no adjusting items in 2018, it said.
GMS executive chairman Tim Summers said: “2019 was a difficult year for GMS, and we took decisive action on all fronts.
“Governance processes were reformed, the board reshaped, and a new senior management team put in place.
“We made material reductions in our cost base, while at the same time delivering significant new contract wins.
“We ended 2019 with EBITDA levels slightly ahead of our guidance.”
He added that after a year of negotiations an “in principle agreement has been reached with lenders on the key terms of restructuring our bank debt which will give GMS renewed access to liquidity and a firm financial platform to move the business forward through 2020 and beyond”.
Summers said that market conditions “remain challenging”, but the company’s financial performance to the end of March 2020 is slightly better than its 2020 business plan.
On 30 April, it was reported that GMS had received a takeover proposal from Dutch company Seafox International.
The offer is currently being reviewed by the GMS board.