- Gulf Marine Services' full-year results were expected to be broadly in line with guidance, but the company said performance was unlikely to improve next year and that it would breach its debt covenants.

The company said it was experiencing an ongoing underutilisation of its vessels, owing to a number of factors, including an oversupply of vessels across the industry.

'Whilst the board believes that day rates will recover over time, the board is of the view that these factors will continue to impact day rates in 2019 and the anticipated recovery in day rates will be slow to materialise in the next twelve months,' the company said.

Gulf Marine Services said it expected to be in breach of certain banking covenants at the end of 2018, as the delay in signing recently awarded contracts would defer the mobilisation of these contracts into 2019.

The group's said it was currently considering a number of ways of addressing its long-term capital structure to service its scheduled increased debt repayments from 2020 onwards.

The company said it expected the calendar day utilisation of its overall core fleet to improve to approximately 70% in 2018 from 58%.

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