Half-year Financial Report

Gulf Marine Services PLC

('Gulf Marine Services', 'GMS', 'the Company' or 'the Group')

Interim results

for the six-month period ended 30 June 2026

GMS, a leading provider of self-propelled, self-elevating support vessels to the offshore industry, is pleased to announce its interim results for the six-month period ended 30 June 2026 (H1 2026).

Overview

¹ This represents an Alternative Performance Measure (APM) as defined in the Glossary which is included in Note 5 to the interim consolidated Financial Statements.

H1 Financial and Operational Highlights:

Outlook:

Mansour Al Alami, Executive Chairman, GMS said:

"The first half of the year was significantly impacted by disruptions resulting from the war in the Gulf, but our core business remains strong with improved average day rates and higher backlogs. Supported by expansion in Latin America alongside fully operational assets deployed in Europe, performance is expected to rebound in the second half of 2026. This expectation assumes that the Gulf region will not return to active military actions."

Chairman's Review

Group performance

In the first half of 2026, the Group's adjusted revenue decreased by 3% to US$ 84.1 million (H1 2025: US$ 87.1 million), mainly due to the impact of the war in the Gulf (see below) which resulted in an estimated loss of revenue amounting to US$ 11.6 million. Further, a large vessel was under preparation for its contract in Europe during the first three months of the year and only commenced its charter operations on 1 April 2026. The same vessel was fully operational on the same period last year.  As a result of these events, the average fleet utilisation declined to 75% (H1 2025: 87%).

The loss of revenue, together with the incremental operational costs of US$ 1.2 million, due to the war in the Gulf, resulted in a decrease in adjusted EBITDA of US$ 43.8 million, compared to US$ 50.8 million reported in H1 2025. Management is engaged in active discussions with clients to recover the revenue loss.

Conflict in the Gulf

During early March, we were instructed to evacuate the Group's four vessels in one of the countries affected by the conflict, as a precautionary measure. All these vessels gradually returned to work on the same contracts by the middle of June 2026.

As the geopolitical risks are still high, Management continues to monitor the situation closely.

Growth and Business Development

GMS invested and acquired a brand-new mid-class vessel to support the Group's growth ambitions. This was partially financed through a US$ 37.4 million bridge loan, which was merged into the existing bank facilities subsequent to the reporting period. As a result, the net leverage ratio at 30 June 2026 increased to 1.75x (31 December 2025: 1.39x). This ratio remains below the Group's 2.0x target.

In early May 2026, GMS announced its entry into two new markets: Latin America, via a contract for the brand-new mid-class vessel, and Africa, through a third-party vessel management agreement, which represents a new revenue stream. The financial impact of these expansions will be visible in H2 2026.

The contract awards and extensions across the Group during the period have a combined total charter period of 12.3 years (H1 2025: 8.1 years), resulting in an increased backlog of US$ 628 million as at 30 June 2026 (31 December 2025: US$ 606 million). Further, average day rates improved to US$ 37.4k (H1 2025: US$ 35.1k).

Governance

There were no changes in the composition of the Board during the period. During the Annual General Meeting held on 18 June 2026, all the Directors received overwhelming support from the shareholders for re-appointment.

Outlook

GMS reaffirms its FY2026 adjusted EBITDA guidance of US$ 105-115 million. Despite H1 2026 operational disruptions, resulting from the conflict in the Gulf, performance is expected to rebound in H2 2026, assuming no return to active military actions. This recovery will be driven by earnings contributions from the Group's expansion into Latin America, and the full-year operational impact of the additional large vessel deployed in Europe from 1 April 2026. Until we have a greater clarity on the geopolitical risks, we continue to defer the implementation of our shareholder distribution policy.

Mansour Al Alami

Executive Chairman

04 September 2026

Notes to Editors:

Gulf Marine Services PLC, a company listed on the London Stock Exchange, was founded in Abu Dhabi in 1977 and has 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, Qatar and the United Kingdom. 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 and South 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 (which are opex-led activities), as well as offshore platform installation and decommissioning and offshore wind turbine installation (which are capex-led activities).

The SESVs are categorised by size - K-Class (Small), S-Class (Mid), and E-Class (Large) - with these capable of operating in water depths of 45m to 80m depending on leg length. The vessels are four-legged and are self-propelled, which means they do not require tugs or similar support vessels for moves between locations in the field; this makes them significantly more cost-effective and time-efficient than conventional offshore support vessels without self-propulsion. They have a large deck space, crane capacity, and accommodation facilities (for up to 300 people) that can be adapted to the requirements of the Group's clients.

Gulf Marine Services PLC's Legal Entity Identifier is 213800IGS2QE89SAJF77

www.gmsplc.com

Disclaimer

The content of the Gulf Marine Services PLC website should not be considered to form a part of or be incorporated into this announcement.

Financial Review

¹ This represents an Alternative Performance Measure (APM) as defined in the Glossary which is included in Note 5 to the interim consolidated Financial Statements.

Revenue and segment information

The Group reported a 3% decline in adjusted revenue to US$ 84.1 million (H1 2025: US$ 87.1 million), primarily due to impact of the conflict in the Gulf, where four of the Group's vessels were instructed to evacuate as a precautionary measure. Although all these vessels were back on hire on the same contract by the middle of June 2026, conflict in the Gulf region resulted to an estimated loss of revenue amounting to US$ 11.6 million during H1 2026.

The conflict in the Gulf resulted in a decline in average fleet utilisation to 75% (H1 2025: 87%).  Average fleet utilisation was also impacted by the planned mobilisation work to prepare a large vessel ahead of its charter in Europe, which started on 1 April 2026. This vessel remained off hire for the entire first quarter of 2026, compared to Q1 2025 where it was fully operational.

GMS started to operate a leased large vessel in Q2 2025. This vessel was operational for five months in H1 2026 versus two months in the prior period, delivering an incremental adjusted revenue of US$ 4.1 million. Further, average day rates improved by 7% to US$ 37.4k (H1 2025: US$ 35.1k) during the period ended 30 June 2026.

The table below shows the revenue contributions per geographical region:

The reduction in adjusted revenue contribution from the Middle East is mainly the result of the war in the Gulf as well as the transfer of a large vessel to Europe. The transfer of a large vessel to Europe enhances the Group's presence in the renewables sector.

GMS broadened its geographical footprint in the second half of 2026 as its newly acquired mid-class vessel is on hire in Latin America.

The table below shows the contribution to revenue and segment gross profit made by each vessel class during the period:

Cost of sales and general & administrative expenses

Underlying cost of sales¹ (which excludes depreciation, amortisation and impairments) increased to US$ 32.5 million (H1 2025: US$ 29.5 million) mainly due to five months of operation of a leased large vessel as compared to two months in the same period last year, redeployment of a large vessel in Europe in April 2026 and the incremental operational costs due to the conflict in the Gulf. As a percentage of adjusted revenue, underlying cost of sales increased to 39% (H1 2025: 34%).

Depreciation, amortisation and impairments charged to cost of sales increased to US$ 44.9 million (H1 2025: US$ 22.1 million). This was driven mainly by recognition of an impairment loss during the period amounting to US$ 22.7 million (H1 2025: nil).  The impairment loss resulted primarily from the ongoing geopolitical situation in the Gulf region.

Underlying general and administrative expenses¹ (which excludes depreciation and amortisation) increased to 9.1% (H1 2025: 8.2%) as a percentage of adjusted revenue.

¹Represents costs excluding depreciation, amortisation, impairments and other exceptional costs. A reconciliation of this measure is provided in Note 5 to the condensed consolidated interim financial statements.

Finance expenses

Finance expenses decreased by 6% to US$ 7.6 million (H1 2025: US$ 8.1 million), with GMS benefiting from an improvement of its net leverage ratio, resulting from the bank margin being reduced by 50 bps starting Q2 2025, and slightly lower market interest rates compared to the prior period.

Considering the new bridge loan amounting to US$ 37.4 million, which was used to partially finance the acquisition of a brand-new mid-class vessel, gross debt increased to US$ 201.8 million (31 December 2025: US$ 184.4 million). The portion of gross debt hedged by interest rate swaps rose to US$ 82.9 million (31 December 2025: US$ 32.7 million), as a result of a new interest rate swap contract entered during the current period.

Fair value of derivatives

During the period, the fair value gains on derivatives was US$ 0.3 million, as compared to US$ 4.2 million fair value loss from the same period last year.  In the previous period, the derivative is attributable to the warrants which were concluded on 30 June 2025.  In the current period, derivatives pertain to interest rate swaps and forward foreign exchange contracts to mitigate the risks of adverse fluctuations in interest and currency exposures of the term loan.

For further details, please refer to the derivative financial instruments' disclosure in Note 18 to the condensed consolidated interim financial statements.

Tax expenses

Tax expense was US$ 2.6 million (H1 2025: US$ 12.9 million). In the prior period, the Group recorded a charge related to one-time impact of a tax ruling received in certain jurisdictions as announced on 14 May 2025.

Earnings

The Group incurred a net loss of US$ 14.8 million (H1 2025: net profit of US$ 3.9 million), primarily due to the recognition of an impairment loss during the period ended 30 June 2026, amounting US$ 22.7 million, and lower EBITDA (as discussed above), offset by lower tax expenses and the impact of change in the fair value of derivatives.

On an adjusted basis (after excluding the impact of impairment and other adjusting items), net profit was US$ 6.9 million (H1 2025: US$ 14.1 million).

Cash flow and liquidity

The Group generated operating cash flows of US$ 44.9 million (H1 2025: US$ 41.2 million) during the period, spent US$ 57.8 million (H1 2025: US$ 12.9 million) on its investing activities, while the net cash inflow from financing activities was US$ 1.6 million (H1 2025: net outflow of US$ 53.3 million).

Capital expenditure increased to US$ 58.8 million (H1 2025: US$ 12.9 million), primarily due to the acquisition of a brand-new mid-class vessel, necessary spending for vessel improvements and upgrades, and drydocking activities. The acquisition of a new vessel was partially financed by US$ 37.4 million bridge loan, which was merged into the existing syndicated bank facilities, subsequent to the reporting period ended 30 June 2026.

The Group has available working capital facility of US$ 21.8 million (31 December 2025: US$ 22.7 million). Subsequent to the period ended 30 June 2026, the total working capital facility increased by US$ 7.5 million.

Balance sheet

Total assets at 30 June 2026 increased to US$ 708.7 million (31 December 2025: US$ 699.9 million). Net additions to property and equipment as well as on drydocking expenditure amounted to US$ 13.8 million, after the acquisition of a brand-new mid-class vessel, depreciation and amortisation of US$ 18.0 million (H1 2025: US$ 17.3 million) and impairment charges of US$ 22.7 million (H1 2025: nil). Prepayments increased to US$ 14.4 million (31 December 2025: US$ 4.5 million) due to the mobilisation costs spending related to the new contracts, and reduction in cash and cash equivalents to US$ 16.4 million (31 December 2025: US$ 27.8 million).

Total liabilities increased to US$ 300.8 million (31 December 2025: US$ 277.7 million). This was mainly due to the net increase in bank borrowings, by US$ 17.2 million, as a result of the bridge loan obtained to finance the acquisition of a brand-new mid-class vessel, an increase in trade and other payables by US$ 9.2 million for the higher contract liabilities that will be recognised as revenue in future over the term of the contract with the customers, offset by a reduction of lease liabilities by US$ 3.9 million.

Total equity decreased to US$ 407.9 million (31 December 2025: US$ 422.3 million), primarily due to the net loss incurred during the period of US$ 14.8 million (H1 2025: net profit of US$ 3.9 million).

Net Bank Debt and Borrowings

In January 2026, GMS obtained a bridge loan amounting to US$ 37.4 million to partially finance the acquisition of a brand-new mid-class vessel. Subsequent to reporting period ended 30 June 2026, this bridge loan was merged into the existing bank facilities and will be settled in 20 quarterly instalments over five years starting September 2026. Further, the total working capital facility increased by US$ 7.5 million as a result of this latter transaction.

During the period ended 30 June 2026, total repayment on bank borrowings amounted to US$ 20.0 million (H1 2025: US$ 46.8 million).

Net bank debt increased to US$ 185.4 million (31 December 2025: US$ 156.6 million), while the net leverage ratio increased to 1.75x (31 December 2025: 1.39x). The net leverage ratio is still below the Group's 2.0x target.

Going concern

Over the years, the Group was able to reduce the net leverage ratio to 1.75x as at 30 June 2026 (from as high as 8.06x as at 31 December 2020), below the 2.0x target. This situation strengthens its agility and resilience.

The Group's forecasts indicate that it will have sufficient liquidity to meet its obligations for at least the next 12 months. Accordingly, the condensed consolidated interim financial statements of the Group for the current period have been prepared on the Going Concern basis. For further details please refer the going concern disclosure in Note 2 to the condensed consolidated interim financial statements.

Risks and uncertainties

Several risks and uncertainties could significantly influence the Group's performance for the rest of 2026. The Directors believe that the principal risks and uncertainties have remained consistent since the release of the Annual Report for the year ended 31 December 2025. For a comprehensive analysis of these risks and the Group's mitigation strategies, please refer to pages 23 to 28 of the 2025 Annual Report, available at www.gmsplc.com.

RESPONSIBILITY STATEMENT

Financial information for the period ended 30 June 2026.

We confirm to the best of our knowledge:

By order of the Board

INDEPENDENT REVIEW REPORT TO GULF MARINE SERVICES PLC (THE "ENTITY")

Conclusion

We have been engaged by the Entity to review the Entity's condensed set of consolidated financial statements in the half-yearly financial report for the six months ended 30 June 2026 which comprises the condensed consolidated statement of comprehensive income, the condensed consolidated statement of financial position, the condensed consolidated statement of changes in equity, the condensed consolidated statement of cash flows, a summary of material accounting policies and other explanatory notes.

Based on our review, nothing has come to our attention that causes us to believe that the condensed set of consolidated financial statements in the half-yearly financial report for the six months ended 30 June 2026 is not prepared, in all material respects in accordance with International Accounting Standard 34 Interim Financial Reporting ("IAS 34") as adopted for use in the UK and the Disclosure Guidance and Transparency Rules ("the DTR") of the UK's Financial Conduct Authority ("the UK FCA").

Basis for conclusion

We conducted our review in accordance with International Standard on Review Engagements (UK) 2410 Review of Interim Financial Information Performed by the Independent Auditor of the Entity ("ISRE (UK) 2410") issued for use in the UK. A review of interim financial information consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures.

A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing (UK) and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion. 

Emphasis of Matter - Geopolitical developments in the Middle East and Gulf region

We draw attention to Note 2 to the condensed consolidated financial statements, which sets out the Directors' evaluation of the potential impact of ongoing regional conflict developments in the Middle East on the Group's operations and financial position. As described in that note, the geopolitical situation in the Gulf has led to operational disruptions, including the suspension of certain vessel activities and increased uncertainty in utilisation levels. While the situation continues to evolve and may create uncertainty in regional economic and operating conditions, management has assessed the Group's liquidity, forecast cash flows, and the mitigating actions available should conditions worsen. Based on this assessment, the Directors have concluded that no material uncertainty exists that may cast significant doubt on the Group's ability to continue as a going concern. Our conclusion is not modified in respect of this matter.

Conclusions relating to going concern

Based on our review procedures, which are less extensive than those performed in an audit as described in the Basis for conclusion section of this report, nothing has come to our attention that causes us to believe that the directors have inappropriately adopted the going concern basis of accounting, or that the directors have identified material uncertainties relating to going concern that have not been appropriately disclosed.

This conclusion is based on the review procedures performed in accordance with ISRE (UK) 2410. However, future events or conditions may cause the Entity to cease to continue as a going concern, and the above conclusions are not a guarantee that the Entity will continue in operation.

Directors' responsibilities

The half-yearly financial report is the responsibility of, and has been approved by, the directors. The directors are responsible for preparing the half-yearly financial report in accordance with the DTR of the UK FCA.

The directors are responsible for preparing the condensed set of consolidated financial statements included in the half-yearly financial report in accordance with IAS 34 as adopted for use in the UK.

As disclosed in note 1, the annual financial statements of the Entity for the year ended 31 December 2025 are prepared in accordance with UK-adopted international accounting standards. 

In preparing the condensed set of consolidated financial statements, the directors are responsible for assessing the Entity's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Entity or to cease operations, or have no realistic alternative but to do so.

Our responsibility

Our responsibility is to express to the Entity a conclusion on the condensed set of consolidated financial statements in the half-yearly financial report based on our review.

Our conclusion, including our conclusions relating to going concern, are based on procedures that are less extensive than audit procedures, as described in the Basis for conclusion section of this report.

The purpose of our review work and to whom we owe our responsibilities

This report is made solely to the Entity in accordance with the terms of our engagement to assist the Entity in meeting the requirements of the DTR of the UK FCA. Our review has been undertaken so that we might state to the Entity those matters we are required to state to it in this report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Entity for our review work, for this report, or for the conclusions we have reached.

KPMG                                                                                                  04 September 2026

Chartered Accountants, Statutory Audit Firm
1 Harbourmaster Place
IFSC
Dublin 1
D01 F6F5

GULF MARINE SERVICES PLC

Condensed Consolidated Statement of Comprehensive Income

for the period ended 30 June 2026

All results are derived from continuing operations in each period. There are no discontinued operations in either period.

The accompanying notes form an integral part of these condensed consolidated interim financial statements.

GULF MARINE SERVICES PLC

Condensed Consolidated Statement of Financial Position

as at 30 June 2026

The accompanying notes form an integral part of these condensed consolidated interim financial statements.

GULF MARINE SERVICES PLC

Condensed Consolidated Statement of Changes in Equity

for the period ended 30 June 2026

* Addition to share premium amount reflects cash proceeds US$ 4.0m and release of warrants liability of US$ 13.3m upon exercise of warrants.

The accompanying notes form an integral part of these condensed consolidated interim financial statements.