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Gulf Marine Services Profit Drops After Regional Conflict Disrupts Operations
(MENAFN) UAE-based offshore energy services company Gulf Marine Services reported a significant decline in earnings for the first quarter of 2026, attributing the downturn to disruptions caused by regional conflict that forced it to temporarily evacuate several vessels, according to reports.
The company’s earnings before interest, taxes, depreciation, and amortization fell by 24%, dropping to $19.5 million for the three-month period ending March 31, compared with $25.6 million in the same period the previous year. Revenue also decreased by 10%, falling from $42.3 million to $38 million.
Operational efficiency was impacted as well, with vessel utilization declining sharply to 74% from 89% a year earlier. The company stated that four of its vessels were ordered to leave operations in a Gulf Cooperation Council country in early March as a precautionary measure linked to the conflict in the Gulf region. As a result, operations in that location were suspended and no revenue was recorded from those assets for the month.
Despite the setback, the firm reported some positive financial indicators. Average daily rates increased by 8% year-on-year to $37,000, and its order backlog expanded by 16% to $660 million at the end of the quarter. By early May, the backlog had grown further to $666 million.
The company also expanded its fleet in January with the acquisition of a mid-class vessel, increasing its operational fleet to 15 ships. This purchase was partly financed through a $37.4 million bridge loan.
Gulf Marine Services maintained its full-year 2026 EBITDA guidance between $105 million and $115 million, noting that the first quarter was expected to be transitional. Management acknowledged that the regional war had delayed and disrupted operations but indicated that activity was gradually resuming, with crews returning to evacuated vessels in April and clients rejoining some of the assets shortly afterward.
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