Geoquip Marine re-sets bondholder relationship, anticipates renewed demand

Geoquip Marine said 2025 saw little capacity awarded compared to the previous few years, driven by a more challenging offshore wind outlook and subsequent auction delays and cancellations. This meant that the group’s performance in the first six months of 2026 was weak, reflecting what it described as “very challenging market conditions in the offshore wind geotechnical sector.” 

In 1H 2026, the company’s revenue was impacted by a lower opening backlog, reduced tendering activity during the second half of 2025 and the continued postponement and de-scoping of offshore wind projects, resulting in lower vessel utilisation compared with the prior year. Geoquip said these effects were particularly strong in the European market and affected operational activity. 

As a result of weak performance in H1 2026 and outlook for H2 2026, the company was forced to approach bondholders to seek a waiver of the leverage ratio covenant in its bond. A written resolution was submitted to bondholders on 10 September 2026, and an agreement with the majority of them on a waiver and certain other amendments to the bond has now been reached. 

The agreement also includes support in the form of cash injection to the group from shareholders, with shareholders undertaking to inject up to US$24M cash, with US$12M by 2 October 2026. In addition, the group recently completed the voluntary liquidation of its Nigerian legal entity, although the liquidation is not expected to have a material impact on the company’s interim financial statements.

Geoquip has also continued its focus on cost-saving initiatives through the quarter and says operating expenses are coming down as a result. Capital expenditures in the first half of 2026 were limited to targeted investments in equipment upgrades and capability enhancements which it believes are necessary to execute work won in 2026, and maintaining assets in a good workable condition. These were principally related to vessel and rig upgrades and equipment capability enhancements such as deep-water capabilities. 

Based on the group’s current financial forecasts, management expects that the Group will return to compliance with the leverage ratio covenant by the end of the third quarter of 2027, the first test date for the leverage ratio covenant under the amendment proposal.

As reported in a presentation by the company at the Pareto Securities’ 33rd Annual Energy Conference, 2026 shows a surge in overall tender value received by the company, such that it represents the highest level ever recorded by Geoquip as of July. The company said year-to-date 2026 ‘represents the third largest tender value for offshore wind over the past eight years and the largest for oil and gas.’ The majority of tenders received YTD relate to work in 2027.

Revenue in H1 2026 was US$36M, with backlog at end of H1 2026 (updated as of mid-September) at approximately US$40M. Geoquip expects a market recovery in 2027, with H2 2027 to be stronger than H1 2027.