LONDON: Gulf Marine Services PLC said a Saudi court rejected its appeal of a $9.2 million tax assessment tied to transfer pricing disputes for the 2017-2019 fiscal years.
The London-listed offshore energy support vessel operator disclosed the ruling in a regulatory filing Tuesday after Saudi Arabia’s Alternative Dispute Resolution Committee denied its latest settlement proposal. A court hearing, initially scheduled for May 15, was moved to May 12, where judges upheld the tax authority’s decision.
The company, which had provisioned for the liability in its 2024 financial statements, said the final penalty amount remains unclear. Management will seek a waiver on fines while adjusting its financials to reflect the judgment.
Gulf Marine reaffirmed its 2025 adjusted EBITDA forecast of $100 million to $108 million and a 2026 target of $105 million to $115 million. However, the payout may slightly delay efforts to reduce its net leverage ratio from 1.79x to 1.5x.
The dispute stemmed from a 2021 assessment by Saudi Arabia’s Zakat, Tax and Customs Authority over inter-group bareboat charter agreements. The company had appealed through multiple channels before the court’s final ruling.