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www.gmsuae.com
A Stable Workhorse Prepared for Growth
Gulf Marine Services
8 May 2014
This presentation has been prepared by Gulf Marine Services PLC (the "Company"). This presentation does not constitute or form part of any offer to sell or issue,
or invitation to purchase or subscribe for, or any solicitation of any offer to purchase or subscribe for, any securities of the Company, nor shall the fact of its
presentation form the basis of, or be relied on in connection with, any contract or investment decision.
No representation or warranty, expressed or implied, is made or given by or on behalf of the Company, or any of its respective affiliates, members, directors,
officers or employees or any other person as to the accuracy, completeness or fairness of the information or opinions contained in this presentation or any other
material discussed verbally. None of the Company or any of its respective affiliates, members, directors, officers or employees nor any other person accepts any
liability whatsoever for any loss howsoever arising from any use of this presentation or its contents or otherwise arising in connection therewith.
This presentation includes forward-looking statements. The words "expect", "anticipate", "intends", "plan", "estimate", "aim", "forecast", "project" and similar
expressions (or their negative) identify certain of these forward-looking statements. These forward-looking statements are statements regarding the Company's
intentions, beliefs or current expectations concerning, among other things, the Company's results of operations, financial condition, liquidity, prospects, growth,
strategies and the industry in which the Company operates. The forward-looking statements in this presentation are based on numerous assumptions regarding
the Company’s present and future business strategies and the environment in which the Company will operate in the future. Forward-looking statements involve
inherent known and unknown risks, uncertainties and contingencies because they relate to events and depend on circumstances that may or may not occur in the
future and may cause the actual results, performance or achievements of the Company to be materially different from those expressed or implied by such forward
looking statements. Many of these risks and uncertainties relate to factors that are beyond the Company's ability to control or estimate precisely, such as future
market conditions, currency fluctuations, the behaviour of other market participants, the actions of regulators and other factors such as the Company's ability to
continue to obtain financing to meet its liquidity needs, changes in the political, social and regulatory framework in which the Company operates or in economic or
technological trends or conditions. Past performance should not be taken as an indication or guarantee of future results, and no representation or warranty,
express or implied, is made regarding future performance. No representation or warranty is made that any forward-looking statement will come to pass. No one
undertakes any obligation or undertaking to publicly release any updates or revisions to these forward-looking statements to reflect any change in the Company's
expectations with regard thereto or any change in events, conditions or circumstances on which any statement is based after the date of this presentation.
Accordingly, undue reliance should not be placed on the forward-looking statements, which speak only as of the date of this presentation.
To the extent available, the industry and market data contained in this presentation has come from official or third party sources. Third party industry publications,
studies and surveys generally state that the data contained therein have been obtained from sources believed to be reliable, but that there is no guarantee of the
accuracy or completeness of such data. While the Company believes that each of these publications, studies and surveys has been prepared by a reputable
source, the Managers and the Company have not independently verified the data contained therein. In addition, certain of the industry and market data contained
in this presentation come from the Company's own internal research and estimates based on the knowledge and experience of the Company's management in the
market in which the Company operates. While the Company believes that such research and estimates are reasonable and reliable, they, and their underlying
methodology and assumptions, have not been verified by any independent source for accuracy or completeness and are subject to change. Accordingly, undue
reliance should not be placed on any of the industry or market data contained in this presentation.
Disclaimer
2
The information and opinions contained in this presentation are provided as at the date of this presentation and are subject to verification, completion and
change without notice.
No reliance may be placed for any purpose whatsoever on the information contained in this presentation, or any other material discussed verbally, or on its
completeness, accuracy or fairness. This presentation should not be considered as a recommendation by the Company, or any of its respective advisers and/or
agents that any person should subscribe for or purchase any securities of the Company. Prospective purchasers of securities of the Company are required to
make their own independent investigation and appraisal.
In giving this presentation, neither the Company nor its advisers and/or agents undertake any obligation to provide the recipient with access to any additional
information or to update this presentation or any additional information or to correct any inaccuracies in any such information which may become apparent.
By viewing the presentation you agree to be bound by the foregoing limitations.
By viewing the presentation you agree to be bound by the foregoing limitations.
Disclaimer
3
Page
Introduction to GMS 5
Market Overview 8
Clients 9
Fleet Overview 10
Historic Results 12
SESV Providers 13
Replicating the GMS Model 14
Drivers for SESV Demand 15
Estimated Total Market Demand 16
Future Growth Strategy 17
Finance – Overview by Vessel 19
Revenue Breakdown and Day Rates 20
Vessel Utilisation 21
Order Book of Contracts and Options 22
Fleet Expansion Capital Expenditure 23
IMS Summary 24
Presentation Summary 26
Appendix 28
4
Contents
Introduction to GMS
5
A world leading global SESV operator
Large (E-Class) vessel ready to sail. Large (E-Class) vessel jacked up at client location.
Introduction to GMS
• One of the world’s largest independent international operators of advanced self-propelled Self-Elevated Support Vessels (SESVs).
• Operates three classes of vessels: Small, Mid-Size and Large vessels.
• One of the youngest fleets in the industry which GMS builds and maintains at its own yard in the UAE.
• Currently serving global blue chip clients in the Northwest Europe and MENA regions. Significant expansion plans to enter West Africa and South East Asia markets.
• SESVs provide the stable platform for delivery of a wide range of services throughout the total lifecycle of offshore oil, gas and renewable energy activities.
• GMS’ focus is on Opex revenue and brownfield oil services.
6
A world leading global SESV operator
Introduction to GMS
7
Growth strategy
• Current and future demand under-serviced by efficient specialist vessels such as those supplied by GMS.
• Significant growing demand for shallow water brownfield maintenance to extend asset life and enhance production.
• Highly versatile four-legged SESVs that are significantly more cost effective than alternative solutions.
• Strategy to grow fleet through construction of six new vessels to take advantage of this market opportunity.
• Experienced management team to grow the company; strong proven track record of delivering successful operational and financial performance.
Market Overview
8
Existing and target markets
• Market dominance in MENA.
• Successful entry into Northwest
Europe with Large class vessels.
• Significant scope for expansion
into new markets, subject to
vessel availability.
(1) O&G platforms installed as of 2012, based on Douglas Westwood report.
(2) As of 2012, Douglas Westwood report.
Clients
9
A well diversified blue chip client base
(1) Statoil serves as operator of SCIRA Offshore Energy.
Fleet Overview
10
Three classes of vessels serve a range of client needs
Small (K-Class) Mid-Size (S-Class) Large (E-Class)
• 7 units + 1 to be acquired
• Avg age: 11 yrs
(7 yrs excl Naashi)
• Water Depth: 45m
• High demand from the MENA region (O&G)
• 3 units to be constructed
• Avg age: N/A
• Water Depth: 55m
• Targets multiple regions and markets
• 2 units + 2 to be constructed
• Avg age: 3 yrs
• Water Depth: 65-80m
• High demand from NWE (O&G, renewables)
• The vessels are constructed and maintained at the GMS yard in the UAE.
• This provides cost effective construction facilities with 30% cost savings per vessel.
• Production can be scaled up and down rapidly and is flexible for new vessel designs.
Fleet Overview
11
High specification premium fleet
(1) Applies to Large and Mid-Size Vessels only. (2) Age as of 1 January 2014.
(3) WTIVs have the potential to offer construction & maintenance support and well servicing activities, subject to fulfilling legislative H.S.E. requirements.
Cost
Efficiency
Reliability
Safety
Number of Legs
Operator Safety
Operator
Experience
Vessel Age
Mobility
Rig move
Accurate
Positioning
Accommodation
capacity
Weather
Tolerance
• Fleet self-propelled
• Expandable by another
150 PoB to a total of 300
PoB • Ability to operate in
harsh weather
conditions(1)
• 37 years
• 9 years(2) (7 years ex-
Naashi)
• No serious incidents
• UKCS qualified
• Stable 4-legged
platform
• Faster jacking time
• Large and Mid-Sized
both DP2
GMS Vessel Advantage Comparative Vessel Capabilities
Flexible fleet results in high vessel utilisation
Historic Results
12
Operational and financial performance - a successful track record
Note: 2013 financials shown are unaudited and from management accounts
(1) Calculated as net profit before tax plus depreciation of property, plant and equipment, amortization of intangibles and dry docking expenditure, share appreciation rights, net finance cost and
foreign exchange losses; minus miscellaneous income, foreign exchange gains and any one-off or non-recurring costs.
(2) Calculated as average between Large and Small Vessels. Based on total Large and Small Vessel days available, including days of planned maintenance and mobilisation.
(3) Average day rates of contracts ongoing in each year. Note, K-Class excludes contracts under 100 days.
SESV Providers
13
Limited supply of SESV vessels
SESV New Build Order Book (Until 2015)
Type Name Owner Propulsion Leg Length (m) Crane (mt) Deck (m
2) POB Country Built Delivery
Jackup Barges
L/B Jill Montco Offshore û 102 500 1,400 148 US Q3 2014
SEP 551 NPCC û 70 200 800 217 UAE 2014
SESVs
GMS Enterprise GMS ü 80 400 1,035 150 UAE Q3 2014
S-1 GMS ü 77 150 807 150 UAE Q2 2015
S-2 GMS ü 77 150 807 150 UAE Q4 2015
TBN GPC ü 65 – – – – 2014 Pepper NAVTECH ü 67 – – 150 UAE Q2 2015
Pesto NAVTECH ü 67 – – 150 – 2015
Seapup 2 PT SWADAYA ü 60 – – – – 2015
Teras Sunrise Teras ü 80 750 2,500 260 ID 2014
TBN Zakher Marine ü 90 190 1,600 150 – 2014
Source: Douglas Westwood report.
(1) Includes GMS. Includes O&G and renewables. Only self-propelled vessels.
(2) Age as of 1 January 2014.
• Only a few SESV providers in the world.
• 90 vessels globally excluding Gulf of Mexico,
the majority of which are smaller and less
capable than GMS.
• Very limited number of direct competitors.
• Few new builds coming on in the next 2 years.
Largest International SESV Operators(1) SESV Market
25
9 8 4 4 3 3 3 2
29
0
10
20
30
40
He
rcule
s
Saud
i A
ram
co
Ezio
n
Mic
harr
y &
Co
mpa
ny
SeaJacks
De
wayle
's
MP
I O
ffsh
ore
Mill
en
niu
mO
ffsho
re
Oth
er
Number of Vessels
Average Fleet Age (Years) (2)
25 9 27 2 8 3 30 5 14 n.a.
Replicating the GMS Model
14
Significant barriers to entry
Successfully Operating SESVs in GMS’ markets has a number of challenges for new entrants and
incumbents:
1
2
3
Operational Track Record Essential to Secure Contracts
• NOC pre-qualification 1 – 2 years.
• Operational experience is explicitly required.
• Strong safety performance.
Safety Case Required for North West Europe O&G work
Capital Intensive Business
• Extensive accreditation process – harsh weather capability essential.
• Few qualified SESV operators.
• E-Class costs approximately $124m for a third party with operational expertise critical to managing new build
construction.
• Customers don’t pre-contract inhibiting debt financed new builds.
Replicating GMS’ fleet and operations could take at least 4 years and would require over $1 billion and would still not be
able to realise the benefits of GMS’ longer operational track-record or integrated model
(1) Assumes new entrants would have to build 7 Small Vessels at $37.5m each (the cost GMS acquires them for), 4 Large Vessels at $124m each (the amount it costs a 3rd party to build them), 3 Mid-Size
vessels at $85m each (the amount it costs a 3rd party to build them ) and 1 Small Enhanced Vessel at $51m (the price GMS is paying for it). New entrants would also require a maintenance base and
suitable levels of working capital adding further significant costs.
(1)
Drivers for SESV Demand
15
High demand and an attractive outlook
As shallow water production infrastructure ages, operators must increase well intervention and topside
maintenance to maintain and enhance production levels.
Major GMS Revenue Drivers
Well Intervention to increase flow rates
and Enhanced Oil Recovery (EOR) to
increase reserve recovery
Field life is extending beyond initial
design life of infrastructure increasing
the population of older platforms in
service
With 2,651 turbines installed
maintenance represents a potential
growth area
Well Service Activity Topside O&M and Construction Renewables
Shallow Water Oil Production –
Increased Service Intensity
Fixed Platforms Age Distribution
Continued Installation & Looming
Growth of Maintenance
56% of Fixed Platforms >20 Years Old
0
3,000
6,000
9,000
12,000
1990 1995 2000 2005 2010 2015F 2020F
MENA NW Europe
SE Asia West Africa
70
%
67
%
55
% 7
6%
0%
25%
50%
75%
100%
2017F0
500
1000
1500
2000
2500
2000 2010 2020
0-65m
>65m
Source: Douglas Westwood report.
(1) Offshore O&G platforms <250m; Douglas Westwood report.
(2) O&G platforms installed as of 2012, based on Douglas Westwood report.
(3) Number of turbines as at 31 December 2012 – Douglas Westwood.
(2)
(1)
(3)
000bblsd Number of turbines
Estimated Total Market Demand
16
SESVs are well placed to win market share from alternative providers
29,244 30,868
32,525 33,706
34,804
39,058
40,822 41,385
29,244
31,251
34,061
41,578 43,502
47,322
49,743
52,915
24% 24% 24% 24% 24% 24% 24% 24%
20%
25%
30%
35%
40%
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
45,000
50,000
55,000
2013 2014 2015 2016 2017 2018 2019 2020
41 102
462
1,506
0
200
400
600
800
1,000
1,200
1,400
1,600
GMS SmallVessel
GMS LargeVessel
Jack-upBarge
Drilling Rig
Significant expansion opportunity
SESVs perform approximately
24% of the total work that is
mostly being carried out by
more expensive drilling rigs
Vessel Days SESV Penetration
Cost Advantage of SESVs over other
types of vessel of up to $1.4m / move
GMS SESVs offer a complete platform
to deliver Well Services:
- Cost Effective, Reliable, Safe
Vessel Demand (Upside case)
Source: Douglas Westwood report.
(1) Assumes SESVs require 1 day of charter hire for relocation, non-propelled vessels would require up to 3 days of charter
hire for relocation, up to 3 support vessels, up to 7 days of hire for each vessel.
(2) Assumes asset is non-propelled. (3) Refers to oil & gas market. Note: penetration rates are illustrative.
Vessel Day Hire Rate OSV Day Rate
$‘000
SESV penetration (Base Case) (3)
(1)
(2)
Vessel Demand (Base case)
Future Growth
17
GMS strategy - clear and focused on profitable growth
Goal: To take advantage of a significant opportunity while maintaining Prudent Levels of Gearing and
generate High Returns on Capital
Target Sustainable Returns with Prudent Leverage
(1) Return on Capital calculated as (Revenue – Opex) = Gross Profits / Capital Costs.
(2) Subject to available distributable profits and shareholder approval.
• Undertaking a new build programme for 5 vessels (2 E-Class, 3 S-Class) to be delivered
over the next 3 years.
• Introduce S-Class as a vessel capable of working in all targeted regions.
• Consider acquisitions / leasing of vessels opportunistically.
Fleet Expansion
• Regional market growth: position additional vessels to target known Oil & Gas work
opportunities in MENA and NW Europe.
• Continue to review opportunities in new regions: West Africa and SE Asia.
• Target future renewable wind maintenance work in NW Europe.
Expand Market
Positions
• Target multi-year contracts for the majority of vessels in the fleet.
• Stable cash flow from combining high vessel contract coverage with reliable modern
vessels.
• Allow continued revenue visibility and stable cashflows.
• New vessel investment hurdle rate of >20% Return on Capital(1) and under 5 year payback.
• Prudent balance sheet: Target Leverage under 3x (Net Debt / LTM EBITDA) even during
peak capex periods.
• Sustainable, progressive dividend policy commencing with a 10% payout ratio.
Sustainable Returns
with prudent
leverage
Target Long Term
Customer Contracts
(2)
18
Finance
19
Overview by vessel
(1) As of December 2013 including contracts that commenced in January 2014.
(2) Assumes utilisation rates of 95% for Small and Mid-Size assets and 90% for Large.
• 7 in Service
• 1 Enhanced
Under
Construction
• 2 Under
Construction
• 1 to Follow
• 2 in Service
• 1 Under
Construction
• 1 to Follow
2013
Utilization
Current Contract
Average Day
Rate
Daily Vessel
Opex
Average Annual
Maintenance
Capex
Targeted
Vessel Return
on Capital
95%
N/A
88%
$37,799
$50,000 -
$70,000
(estimated)
$102,317
$10,000 -
$12,000
$12,000 -
$14,000
$18,000 -
$22,000
$300,000
$300,000
$37.5 -
$51.0M
$65M
$85 -
$89M
27% -
30%
26%
32%
$300,000
Vessel Cost (1) (2)
Finance
20
Revenue breakdown - opex weighted for long term sustainability
64%
16% 20%
Opex
Renewable
Capex
Note: Opex-led activities include fabric maintenance, well intervention, brownfield upgrade, modification projects and retrofit or upgrade activities with respect to enhanced oil recovery activities
in the oil and gas sector. Capex-led activities include greenfield projects, engineering, procurement and construction activities, installation and decommissioning with respect to oil and gas
projects and with respect to EOR activities, water injection and gas injection.
Small vessels
Outlook for day rates are positive:
• Client demand
• Cost effectiveness versus other providers
• GMS flexible fleet
Large Vessels
Revenue Breakdown
Finance
21
Vessel utilisation
Util.
Days
Avail. Util.
Days
Avail. Util.
Days
Avail. Util.
Days
Avail. Util.
Days
Avail. Util.
Days
Avail. Util.
Days
Avail.
Large Vessels (average) n.a. 0 n.a. 0 n.a. 0 96% 282 93% 283 88% 365 92% 310
Small Vessels (average) 99% 188 99% 256 79% 285 73% 313 98% 313 95% 335 90% 324
Average Fleet 99% 99% 79% 78% 97% 94% 91%
Av. 2008-132008 2009 2010 2011 2012 2013
• Utilisation rates are the percentage of available days in a relevant period during which an SESV is under contract and in respect of which a customer is paying a day rate for the charter of the SESV. • Periods during which the SESV is not available for hire due to planned upgrade work, transit time for long term relocation to a new region or construction are not included in the available days figure
used in the calculation. • GMS also subtracts from a base of 365 days those days spent on mobilisation and demobilisation, planned refurbishment and, in the case of a newly constructed SESV, delivery time. • Maintenance days that are included in our contracts are counted as available days (12 days per annum).
Consistently high utilisation levels year on year
Average utilisation per vessel type year on year
Finance
22
Order book of contracts and options
Contract Backlog at 31 December 2013
EOR,
Construction
Current Type of
Work
Maintenance
EOR
EOR
Maintenance / Well Services
Well Services
Well Services
Maintenance
Well Services
Firm Options
Firm Options Total Avg. Remaining
Contract Duration(1)
Large 63 70 133 1.7 yrs
Small 161 134 295 2.8 yrs
AHTS 4 1 5 0.8 yrs
TOTAL 228 205 433 2.2 yrs
(1) Includes firm and option to extend the contracts, as of December 2013.
• Since 2007, 89% of contract extension options
have been exercised.
• Most contracts comprise of a firm period with
client’s option to extend for a further period.
• Client needs result in retendering opportunities
at the end of the contract period with high
renewal rates.
Finance
New build plans
• 2 Large vessels due for delivery in September 2014
and October 2016.
• 3 Mid-sized vessels due for delivery in May 2015,
September 2015 and March 2016.
Leased vessel plans
• Current plans are to purchase Keloa in 2015 and
Kinoa in 2017 for $37.5 million each at the end of their
finance lease periods.
• Pepper (an enhanced small vessel) is due to be
delivered at the end of 2015. The intention is to
purchase the vessel in 2016 for $51 million.
23
Fleet expansion capital expenditure
Capex over the next three years
Capital Expenditure plans for the new build programme
and acquisition of leased assets over the next 3 years is
as follows:
Current capital expansion plans are already fully financed
2014 2015 2016 Total
Large vessel construction
39 48 41 128
Mid-size vessel construction
98 75 6 179
Leased purchases 38 51 89
137 161 98 396
Interim Management Statement
• Continued high demand for our services.
• The order book as at the end of March 2014 was
$395 million and utilisation for Q1 was 95%.
• Opportunities for new contracts remain buoyant.
• The new build programme remains on schedule
and on budget.
• As at the end of March 2014, the Group had net
debt of $165 million (cash of $105 million, bank
debt of $270 million) together with undrawn bank
facilities of $130 million.
24
Summary of the IMS on 8 May 2014
25
Summary
26
• A young, technologically advanced fleet of highly versatile 4-legged SESVs, significantly more cost
effective than alternative solutions.
• Attractive outlook of increased demand for SESVs in shallow water brownfield maintenance, currently
only partially covered by specialised vessels.
• Integrated business model provides capital cost and flexibility advantages.
• Commitment to Health, Safety and Environmental Industry Standards.
• Strong track record of delivering successful operating and financial performance.
• Significant revenue visibility from a substantial contract backlog with high quality long-term customers.
• A highly qualified and experienced management team with a proven track record of growing the
business and creating value for shareholders.
Strong track record with clear plan for growth
27
Thank You
28
Appendix
Page
Management Team 29
Board Members 30
Timeline of Achievements 31
Capital Structure 32
GMS In-House Construction Facility 33
Summary of Growth Plans 34
Small Vessel Overview 35
Mid-Size Vessel Overview 36
Large Vessel Overview 37
Market Dynamics 38
Exceeding Health, Safety and Environmental Industry Standards 39
Future Growth 40
Planned New Build Schedule 41
Investor Relations 42
Management Team
29
Experienced management team with strong track record
Industry Experience: 33 years
With GMS since: Oct 2007
Prior Role: COO at the UAE-based Lamnalco
Group, where he managed a fleet of 90 vessels
Duncan Anderson Chief Executive Officer
Industry Experience: 15 years
With GMS since: Jan 2014
Prior Role: Finance Director at Bowleven, Oil
& Gas company listed on AIM
John Brown Chief Financial Officer
Industry Experience: 18 years
With GMS since: Feb 2013
Prior Role: Head of Marine at Fugro Geoteam,
Operations Director at InterMoorm
Dennis Pedersen Chief Operating Officer
Industry Experience: 16 years
With GMS since: Feb 2008
Prior Role: Regional Finance Manager at
AMEC, Financial Controller P&O
Andy Robertson Finance Director
Industry Experience: 23 years
With GMS since: Aug 2008
Prior Role: Business Project manager at
Lamnalco and James Fisher
Mark Preston Commercial Director
Industry Experience: 25 years
With GMS since: Nov 2009
Prior Role: Dubai Drydocks World, Lamprell
Energy, Saint John Shipbuilding Canada
John Petticrew Technical Director
Industry Experience: 30 years
With GMS since: Aug 2007
Prior Role: Logistics Manager at ADMA-OPCO
Mohammed Antar Support Services Director
Industry Experience: 18 years
With GMS since: Oct 2011
Prior Role: Director of Transformation with Save
the Children UK
Linda Murray Human Resources Director
Experienced & Effective Board
30
Compliant with the UK Corporate Governance Code
Board Composition
Simon Heale
• Independent Non-Exec Chairman
• Joined GMS in 2014
• UK Chartered Accountant with multiple previous
directorships and executive positions
Independent Non-Executive Directors
Duncan Anderson
• CEO
• Joined GMS in 2007
• Has a degree in Marine Machinery
Monitoring Control and managed 90 vessels
at UAE based Lamnalco
Rick Dallas
• Gulf Capital Director
• Joined Gulf Capital in 2007
• Previously CEO of Oryx Capital
International and a Partner at Gibson, Dunn
& Crutcher
Dr Karim El Solh
• Gulf Capital Director
• Over 21 years experience in private equity,
investment banking and real estate,
co-founder of Gulf Capital
• Previously CEO of the National Investor
Simon Batey
• Current lSID of Telecity and an NED of
BlackRock New Energy Investment and
THUS Group
• UK Chartered Accountant
Mike Straughen
• CEO of the Engineering Division at Wood
Group since 2007
• Formerly with AMEC for 25 years
• UK Chartered Engineer
Richard Anderson
• Current NED of Soma Oil & Gas
• 32 years’ experience in oil and gas
industry related finance
• Certified Public Accountant
Timeline of Achievements and Growth
31
Track record
1977 - 2006 • Establishment of Gulf Marine Services. • Four K-Class and one AHTS vessel.
• Acquisition of GMS by Gulf Capital (2007).
• Appointment of new CEO and Management team.
• New strategy: began disposal of non-core assets and investment in new vessels.
• Fifth K-Class Small Vessel delivered.
• Two E-Class Large Vessels delivered.
• Entered offshore renewable energy market in NWE.
• Established UK office (2011).
• Seventh K-Class Small Vessel delivered.
• UK Safety Case awarded.
• Accreditations: ISO 9001, 14001, OHSAS 18001.
• Sixth K-Class Small Vessel delivered.
2007 - 2008
2009 - 2010
2011 - 2014
2013 - 2014
• Third E-Class Large Vessel – construction commenced, delivery due Q4, 2014.
• Development of S-Class Mid-Size Vessel design.
• IPO in March 2014.
Maintaining a Prudent Capital Structure
32
Summary of current financing terms
(1) Subject to available distributable profits and shareholder approval.
• Syndicated loan facility underwritten by Abu Dhabi Islamic Bank.
• $260m Term Loan (fully drawn) with a balance as of the end of March 2014 of $250m. The Group also has access to a Capex Facility (undrawn) of $130m as of the same date and had used a working capital facility of $20m as of the same date.
• The Term Loan is repayable in quarterly installments with a balloon payment of $117m together with the last installment in June 2019.
• Variable interest of 3m-Libor + 410bps, collateral includes all owned assets.
• Company has cash balance as of $105 million as at 31 March 2014.
• Ensure sufficient headroom is maintained on peak target leverage of 3.0x Net Debt / LTM EBITDA.
GMS In-House Construction Facility
33
Efficient and experienced
• Mussafah base is the HQ of GMS, strategically located on the
waterfront of the Mussafah industrial area in Abu Dhabi.
• The lease, which GMS has held since 1977, was renewed in
November 2013 and is next due for renewal in 2016 ($300k /
annum).
• 34,820m2 fabrication and logistical base with the capacity to
assemble / outfit three vessels concurrently.
• Full in-house project management and technical supervision
capabilities.
• Flexible cost and operating structure facilitating manpower ramp up
or downsealing.
• Proven track-record of on time delivery.
• Constructed 2 Large and 1 Small SESVs.
• Project management of refurbishment of 3 Small Vessels.
Construction facility at Mussafah Base in the UAE
Key Technical Specifications
120m of Quay front with 6m water depth alongside.
22800m2 Yard Space.
1420m2 Racked Warehouse Area.
6600m2 Concrete Fabrication Area.
5000m2 Lay down Area.
Carpentry Workshop.
16T Gantry Crane.
CNC Machine.
22 SAW Welding Machine.
20 MIG Welding Machine.
40 SMAW Welding Machine.
Quality standards compliant with ISO9001, ISO14001 and OHSAS18001.
Future Growth
34
Clear plan to grow GMS’ fleet by 66% over the next 3 years
Tight market emerging in NW Europe and
particularly MENA for GMS’ vessels which can be
exploited by adding further vessels to the fleet.
Clients demanding more flexibility and efficiency
from vessels.
Competitor fleets are old, less capable and less
efficient.
Opportunity to expand into new regions with
substantial shallow water field infrastructure.
Renewables market in Europe presents further
opportunity.
Source: Management estimates and Douglas Westwood report
Large Vessels
E-3
E-4
Delivery
Q3 2014
Q3 2016
Est. Cost
$85m
$89m
Vessel
• Target regions – deeper water projects in KSA, Qatar and NW Europe
• Further opportunities to support oil and gas or renewables projects in harsh weather
environments
Mid-Sized Vessels
• New class designed to take advantages of Large Vessel in smaller format
• Target regions – initially MENA; SE Asia, West Africa and NW Europe wind
maintenance
• Currently finishing design process
• Harsh weather capable
Vessel
S-1
S-3
Delivery
Q2 2015
Q1 2016
Est. Cost
$65m
$65m
S-2 Q4 2015 $65m
Enhanced Small Vessel
• Pepper currently being built by Navtech for delivery in Q2 2015.
• Vessel to be leased for one year after which it is managements current intent to
acquire the vessel for c.$51m.
• Target regions – MENA.
Small SESV Overview
35
The backbone of the GMS fleet
Accommodation
Self-propelled
45m water depth capability
Large deck area
Main crane
Four-leg design
• Accommodates 150 people
which can be expanded to
300
• Speed of up to 4-4.5 knots
• Eliminates need for tugs and
support vessels
• 67.9m leg length
• Able to work in 45 meter water
depth
• 600-800m2 deck area
• 36-45 tonnes
• Oil & gas lifting
• Stable and more positioning flexibility
• Faster rig move
• Reduces punch-through risk
Wärtsilä design
Areas of operation
Major customers
• Proven technology with high reliability
and flexibility
• Units constantly tested and very well
known in the core Arabian Gulf market
• GCC
• ADMA-OPCO
• COEC
• Oxy
• ZADCO • Hyundai • McDermott • Total
Mid-Size SESV overview
36
Next generation addition to the GMS fleet
Computer-generated image
Main crane
• 150 tonne main
• 15 tonne auxiliary
Large deck area
• 807m2 area
• Ability to carry oil & gas
equipment, wind turbines
Accommodation
• Accommodates 150 people
which can be expanded
Self propelled
• Speed of 7 knots
• Can carry load from shore to
job location
• Eliminates need for tugs or
support vessels
• Reduced mobilisation time and
significant cost savings
• Dynamic positioning system (DP2)
• Fast and precise positioning at
location
• 77m leg length
• Stable and more positioning
flexibility
• Faster preload and jacking
• Reduces punch-through risk
Gusto MSC 1800x design
Areas of operation
Target customers
• Similar to E-Class design
• South East Asia
• West Africa
• GCC
• NW Europe
• Shell
• Total
• Saudi Aramco
Dynamic positioning
55m water depth capability
Four-leg design
• ADMA-OPCO
• ZADCO
• ADNOC
Large SESV overview
37
The flagship of the GMS fleet
Main crane
• 300 tonnes (2)
• Heavy oil & gas lifting
• Wind turbine installation
Large deck area
• 1,035m2 deck area
• Ability to carry oil & gas
equipment, wind turbines
• Ability to install modules to
increase PoB to 300
• Accommodates 150 people
which can be expanded to 300
• Speed of up to 8 knots
• Can carry load from shore to job
location
• Eliminates need for tugs or
support vessels
• Reduced mobilisation time and
significant cost savings
• Dynamic positioning system
(DP2)
• Fast and precise positioning at
location
• 94.2m leg length
• Able to work in up to 80m water
depth, and 50m in harsh environments
Gusto MSC 2500X design
Priority regions of operation
Major customers
• Offering higher technical and
operational capabilities
• Harsh weather capabilities, opened
up SNS market
• Fully complies with the latest MOU
and meets all of the SNAME(1)
requirements
• North Sea
• GCC
• ARAMCO
• Siemens
• ABB
• Vestas
Dynamic positioning Four-leg design
Self propelled
Up to 80m water depth capability
Accommodation
• JRM
• BG
• ConocoPhillips
• Statoil
• Stable and more
positioning flexibility
• Faster rig jacking
• Reduces punch-through
risk
Market Dynamics
38
Industry overview and market outlook cost comparison
41 102
462
1,506
0
200
400
600
800
1,000
1,200
1,400
1,600
SmallVessel
LargeVessel
Jack-upBarge
DrillingRig
Vessel Day Hire Rate OSV Day Rate
Cost Per Location Move Assumptions
• SESV require 1 day of charter hire for relocation
• Non-propelled vessel would require:
Up to 3 days of charter hire for relocation.
Up to 3 support vessels.
Up to 7 days of hire for each vessel.
• Non self-propelled vessels are highly dependent
on weather conditions.
• Required support vessels hire period may need
to be extended waiting on weather.
• GMS vessels can operate in short weather
windows due to ability to move location faster
(faster jacking and self propelled movement
between locations).
• Other relocation related activities for non self-
propelled vessels include:
• Potential significant cost savings for operators
with annual moves of between 4 and 40 per
year.
Longer survey spread.
Longer ROV spread.
Rig move faster.
Additional Expense of Moving a Non-Propelled Unit vs. SESV is up to $1.4m per move per year
Source: Douglas Westwood report.
$’000
Exceeding Health, Safety and Environmental Industry
Standards
39
LT
IFR
Per
millio
n m
an
ho
urs
Offshore LTI industry Benchmark A strong HSE track record is essential to
operating in our industry particularly for
contract qualification
Health & Safety - key performance indicators (2013)
• Integrated management system accredited by British
Standards Institute.
• UK Health and Safety Executive approved Safety Cases for
the E-Class vessels.
• Establishment of comprehensive training and competence
management system.
System
Structure
Performance
Competence
Integrated Management
Systems certified in
accordance with ISO 9001,
14001 and OHSAS 18001
Robust measurement of
performance with project
oriented approach to
improvement
Competence management
system build in accordance
with OGP practices
Regional structure to cater
for legislations
and client specific
requirements
Source: Company information, OGP (International Association of Oil & Gas Producers) and IMCA (International Marine Contractors Association).
• Significant reduction in company Lost Time Injury Rate since 2008.
• Zero HSE-related improvement notices or prohibition notices issued by an enforcing body.
• Achieved zero LTI’s offshore in 2011 and 2012.
• 14 Years with no LTI on Kamikaze, 9 Years on Kikuyu.
Future Growth
40
Significant potential demand from existing & new markets
29%
19%
52% 0-10y 11-20y >20y
11%
28%
61%
0-10y 11-20y >20y
15%
17%
68%
0-10y 11-20y >20y
28 SESVs operating in the region(1)
697 offshore fixed platforms(2)
68% of which are >20 years old(2)
Platform Age (2) MENA NW Europe
Mature SESV market with growth
from EOR and Well Intervention
24 SESVs operating in the region(1)
392 offshore fixed platforms(2)
49% of which are >20 years old(2)
2,651 installed wind turbines(3)
Platform Age (2)
Platform Age (2)
Emerging SESV market driven by
well services work, substitution of
drilling rigs and wind installations
Source: Douglas Westwood Report
(1) As of 31 December 2012, based on Douglas Westwood report.
(2) O&G platforms installed as of 31 December 2012, based on Douglas Westwood report.
(3) Offshore wind turbines installed as of 2012, based on Douglas Westwood report.
West Africa South East Asia
30 SESVs operating in the region(1)
487 offshore fixed platforms(2)
61% of which are >20 years old(2)
Mature SESV market with stable
growth driven by aging infrastructure
8 SESVs operating in the region(1)
1,717 offshore fixed platforms(2)
52% of which are >20 years old(2)
Emerging markets with operators
beginning to recognise the benefits
of SESVs that can operate during
typhoon season
"Abu Dhabi National Oil Company
(Adnoc) is working on increasing its
oil exports to 3.5 million barrels a day,
and to increase onshore and offshore
gas production, through projects
worth more than $70 billion as part of
Abu Dhabi Economic Vision 2030.“
Suhail Bin Mohammad Faraj Faris
Al Mazrouei
UAE Minister of Energy, 9 Nov 2013
Chief executive of Saudi Aramco,
Khalid A. Al-Falih, has announced
the company plans to increase the
average of its conventional oil
recoveries to 70%, double the world
average. The company is planning
“massive investments” to discover
large, untapped oil and gas
resources, both onshore and offshore,
and both conventional and
unconventional
Saudi Aramco, 15 Oct 2013
“Abu Dhabi National Oil Company
(Adnoc) plans to double its rig fleet
by 2018 so it can reach an ambitions
pumping capacity target. The emirate
will increase its rig count to 88 from
about 40 at present. The increase
comes as Abu Dhabi targets an
increase in production capacity to 3.5
million barrels per day by 2018 from 3
million today.”
The National, 9 Dec 2013
20%
31%
49%
0-10y 11-20y >20y
Platform Age (2)
Planned New Build Schedule at Mussafah Base
41
Investing for growth
Vessel under construction
Note: GMS generally assumes a further two-month period before the vessel goes on hire. This covers the time to move
the vessel to another region or any gap in commencement of its first charter contract.
Chart showing construction schedule for new build vessels
42
Investor Relations
Gulf Marine Services PLC
Enquiries:
Tel: +971 (2) 5028888
John Brown - Group CFO
Anne Toomey - Head of Communications and Investor Relations Executive
Jonathan Gallagher - Corporate Finance Manager
Gulf Marine Services
Mussafah Base,
P.O.Box 46046,
Abu Dhabi,
UAE
www.gmsuae.com