SEACOR Marine Announces First Quarter 2019 Results
SEACOR Marine Holdings Inc. (SMHI), a leading provider of marine and support transportation services to offshore oil and natural gas and wind farm facilities worldwide, today announced results for its first quarter ended March 31, 2019.
First quarter highlights include:
Total operating revenues increased 8.8% as compared with the first quarter of 2018, due to increases of 5.3% in average day rates and 8.0% in utilization. The improved utilization reflected an increase of 5.0% in on hire days notwithstanding a decrease of 8.5% in the number of available days, compared with the first quarter 2018. Operating loss decreased by $3.4 million to $21.0 million as compared with $24.4 million in the first quarter of 2018.
Consolidated direct vessel profit (“DVP”)(1) for the first quarter of 2019 decreased by $1.4 million to $12.0 million from $13.4 million in the first quarter of 2018 due to expensing approximately $4.4 million of mobilization and vessel upgrade costs incurred in the quarter to prepare and position vessels for long-term contracts without comparable expenses incurred in the 2018 quarter. Excluding these costs, DVP would have been approximately $16.4 million in the first quarter of 2019, a 22.4% increase from the first quarter of 2018.
Total lease expense, which amounted to $4.1 million, was $0.8 million and $0.7 million higher compared to the first and fourth quarters of 2018, respectively. These increases reflect non-cash adjustments to lease expenses resulting from the implementation of the new lease accounting standard by the Company on January 1, 2019.
SEACOR Marine closed on three separate transactions which expanded its fleet. One of the transactions led to 100% ownership of SEACOR Marine’s European wind business through the acquisition of the remaining minority interests. Another of the transactions included the acquisition of three previously pooled fast support vessels (“FSVs”) which had pooling distributions of $2.6 million and $2.4 million in 2018 and 2017, respectively, and their acquisition will result in the elimination of the expense going forward. Subsequent to quarter end, we acquired a modern FSV operating in the U.S. under a long-term contract outside of the oil and gas sector.
Chief Executive Officer John Gellert commented on SEACOR Marine’s first quarter results:
“This quarter brought many positive developments. Although the first quarter is a period of seasonally lower activity for our fleet, which has a significant presence in North Sea market and Gulf of Mexico lift boat sector, we saw meaningful improvements in both utilization and day rates. Tendering activity also increased, pointing to a continuing recovery. The quarter also featured significant investment to prepare several assets for long-term charters, including one of our two largest liftboats from the U.S. to the North Sea for work supporting the offshore wind farm industry.
We saw improvements in West Africa and Latin America, and increased contracting activity in the North Sea. Within Latin America, Mexico had positive market developments, contracting vessels in support of integrated well service projects and new contracts with foreign oil companies. I am particularly satisfied with the performance of our joint venture in Mexico, which stands out as one of the few companies in that market which can truly claim local content.
I believe the upfront costs to capture these market opportunities are precursors to growth. Our strategy is to continue positioning the fleet selectively to capitalize on our global presence. The benefit of a strong global presence and diverse fleet was again demonstrated through recent contract awards in Latin America, which will expand our hybrid battery equipped platform supply vessels (“PSVs”) in the market.”
For the first quarter ended March 31, 2019, net loss attributable to SEACOR Marine was $25.5 million ($1.11 per basic and diluted share), and operating loss was $21.0 million. Net loss attributable to SEACOR Marine for the preceding quarter ended December 31, 2018 was $7.8 million ($0.35 per basic diluted share) and operating loss was $11.2 million.Full Report
Source: SEACOR Marine