Monday 30 September 2019 5:03 pm

Gulf Marine Services promises to build for the future after turbulent year

Under-pressure oil service company Gulf Marine Services said it was building for the future as it tried to sail a turbulent market.

The company has ripped out its entire board in the past year, replacing every director after shareholder pressure, it said. It comes as revenues fell two per cent to $55m (£45m) over the first half of the year.

Read more: Lenders throw lifeline to struggling Gulf Marine

Loss before tax widened dramatically to $16.9m over the six months from $4.4m a year before.

But the company said there was a glimmer of good news as it was on track to overshoot its $6m yearly cost-savings target. It aims to exceed it by £2.5m.

“Since April, Gulf Marine Services has made considerable progress overhauling governance and leadership, reducing costs and stabilising our financial position, and we continue to deliver safe and reliable services for our customers,” said chief executive Tim Summers.

The news comes less than a week after Gulf Marine said it had agreed a deal with lenders which will keep it liquid until the end of the year.

The company has been under pressure since the 2014 crash in oil prices, which sucked demand for oil services out the market, stranding companies like Gulf with expensive assets.

Read more: Gulf Marine jettisons boss in stormy waters

“While the current financial conditions facing the group are challenging, our business is stable and demand in the Middle East, our principal market, is strengthening,” said Summers.

He said the company is still working to find a new chief executive after Duncan Anderson resigned in March.