HOUSTON, Aug. 02, 2023 (GLOBE NEWSWIRE) -- SEACOR Marine Holdings Inc. (: SMHI) (the “Company” or “SEACOR Marine”), a leading provider of marine and support transportation services to offshore energy facilities worldwide, today announced results for its second quarter ended June 30, 2023.
SEACOR Marine’s consolidated operating revenues for the second quarter of 2023 were $66.9 million, operating income was $2.9 million, and direct vessel profit (“DVP”)(1) was $30.6 million. This compares to consolidated operating revenues of $54.0 million, operating loss of $15.5 million, and DVP of $9.9 million in the second quarter of 2022, and consolidated operating revenues of $60.0 million, operating income of $0.2 million, and DVP of $22.7 million in the first quarter of 2023.
Notable second quarter items include:
- 23.8% improvement in revenues from the second quarter of 2022 and a 11.5% increase from the first quarter of 2023.
- Average utilization rate of 78%, the highest for a second quarter since 2013, a 1.0% improvement from the second quarter of 2022, and a 2% increase from the first quarter of 2023.
- Average day rates of $15,250, a 25.5% improvement from the second quarter of 2022, and a 6.5% increase from the first quarter of 2023, which was the highest day rate since the fourth quarter of 2015.
- DVP margin increased 209.9% from the second quarter of 2022 and increased 34.8% from the first quarter of 2023.
For the second quarter of 2023, net loss was $4.6 million ($0.17 loss per basic and diluted share). This compares to a net loss for the second quarter of 2022 of $19.1 million ($0.72 loss per basic and diluted share). Sequentially, second quarter 2023 results compare to a net loss of $9.6 million ($0.36 loss per basic and diluted share) in the first quarter of 2023.
Chief Executive Officer John Gellert commented:
“I am pleased with the Company’s second quarter results as the cyclical recovery continued with another consecutive quarter of improved average day rates and utilization. More importantly, the second quarter produced meaningful cash flows from operations through a strong conversion rate with the highest DVP the Company has generated since 2014.
The increase in DVP was primarily due to higher day rates and utilization as well as lower operating expenses. This quarterly improvement was driven by our international business segments, most notably Africa and Europe, which have been virtually sold out during the quarter, and the Middle East. We also continued to make progress in Latin America, despite slightly lower utilization due to scheduled drydockings.
Further improvement in our U.S. business was hampered in the second quarter by low activity levels on the shelf of the Gulf of Mexico, driven in part by the bankruptcy of a significant operator, as well as delays in contract startups for several offshore wind contracts in the Northeast. Additionally, one of our premium liftboats in the U.S. remained offhire for previously reported extended repairs. We expect that this vessel will return to service once temporary repairs are completed during the second half of 2023.
On June 20, 2023, the Company announced the refinancing of the debt associated with three of our modern PSVs that we acquired with shipyard financing during the trough of the cycle. We will continue to address near-term maturities and opportunistically pursue refinancing opportunities that reflect the improved outlook for the business.
I am optimistic about our ability to continue to improve our profitability in the current cycle given the margin available to improve utilization and the fact that average day rates have yet to reflect full cycle dynamics.”
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| (1) | Direct vessel profit (defined as operating revenues less operating costs and expenses, “DVP”) is the Company’s measure of segment profitability. DVP is a critical financial measure used by the Company to analyze and compare the operating performance of its regions, without regard to financing decisions (depreciation and interest expense for owned vessels vs. lease expense for lease vessels). DVP is also useful when comparing the Company’s global fleet performance against those of our competitors who may have differing fleet financing structures. DVP has material limitations as an analytical tool in that it does not reflect all of the costs associated with the ownership and operation of our fleet, and it should not be considered in isolation or used as a substitute for our results as reported under GAAP. See page 4 for reconciliation of DVP to GAAP Operating Income (Loss), its most comparable GAAP measure. | |
SEACOR Marine provides global marine and support transportation services to offshore energy facilities worldwide. SEACOR Marine operates and manages a diverse fleet of offshore support vessels that deliver cargo and personnel to offshore installations, including offshore wind farms; assist offshore operations for production and storage facilities; provide construction, well work-over, offshore wind farm installation and decommissioning support; carry and launch equipment used underwater in drilling and well installation, maintenance, inspection and repair; and handle anchors and mooring equipment for offshore rigs and platforms. Additionally, SEACOR Marine’s vessels provide emergency response services and accommodations for technicians and specialists.
Certain statements discussed in this release as well as in other reports, materials and oral statements that the Company releases from time to time to the public constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Generally, words such as “anticipate,” “estimate,” “expect,” “project,” “intend,” “believe,” “plan,” “target,” “forecast” and similar expressions are intended to identify forward-looking statements. Such forward-looking statements concern management’s expectations, strategic objectives, business prospects, anticipated economic performance and financial condition and other similar matters. Forward-looking statements are inherently uncertain and subject to a variety of assumptions, risks and uncertainties that could cause actual results to differ materially from those anticipated or expected by the management of the Company. These statements are not guarantees of future performance and actual events or results may differ significantly from these statements. Actual events or results are subject to significant known and unknown risks, uncertainties and other important factors, many of which are beyond the Company’s control and are described in the Company’s filings with the SEC. It should be understood that it is not possible to predict or identify all such factors. Given these risk factors, investors and analysts should not place undue reliance on forward-looking statements. Forward-looking statements speak only as of the date of the document in which they are made. The Company disclaims any obligation or undertaking to provide any updates or revisions to any forward-looking statement to reflect any change in the Company’s expectations or any change in events, conditions or circumstances on which the forward-looking statement is based, except as required by law. It is advisable, however, to consult any further disclosures the Company makes on related subjects in its filings with the Securities and Exchange Commission, including Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K (if any). These statements constitute the Company’s cautionary statements under the Private Securities Litigation Reform Act of 1995.
Please visit SEACOR Marine’s website at www.seacormarine.com for additional information.
For all other requests, contact [email protected]
SEACOR MARINE HOLDINGS INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME (LOSS)
(in thousands, except share data)
| Three Months Ended June 30, | Six months ended June 30, | |||||||||||||||
| 2023 | 2022 | 2023 | 2022 | |||||||||||||
| Operating Revenues | $ | 66,891 | $ | 54,017 | $ | 126,864 | $ | 99,608 | ||||||||
| Costs and Expenses: | ||||||||||||||||
| Operating | 36,302 | 44,145 | 73,575 | 83,641 | ||||||||||||
| Administrative and general | 13,704 | 10,210 | 25,336 | 20,134 | ||||||||||||
| Lease expense | 698 | 1,008 | 1,418 | 2,068 | ||||||||||||
| Depreciation and amortization | 13,575 | 14,208 | 27,337 | 28,579 | ||||||||||||
| 64,279 | 69,571 | 127,666 | 134,422 | |||||||||||||
| Gains on Asset Dispositions and Impairments, Net | 265 | 25 | 3,864 | 2,164 | ||||||||||||
| Operating Income (Loss) | 2,877 | (15,529 | ) | 3,062 | (32,650 | ) | ||||||||||
| Other Income (Expense): | ||||||||||||||||
| Interest income | 422 | 190 | 882 | 219 | ||||||||||||
| Interest expense | (8,736 | ) | (6,989 | ) | (17,524 | ) | (13,616 | ) | ||||||||
| Derivative gains (losses), net | — | 33 | — | (1 | ) | |||||||||||
| Foreign currency (losses) gains, net | (603 | ) | 1,170 | (1,428 | ) | 1,991 | ||||||||||
| Other, net | — | (41 | ) | — | (41 | ) | ||||||||||
| (8,917 | ) | (5,637 | ) | (18,070 | ) | (11,448 | ) | |||||||||
| Loss Before Income Tax (Benefit) Expense and Equity in Earnings of 50% or Less Owned Companies | (6,040 | ) | (21,166 | ) | (15,008 | ) | (44,098 | ) | ||||||||
| Income Tax (Benefit) Expense | (1,096 | ) | (1,634 | ) | 61 | (4,055 | ) | |||||||||
| Loss Before Equity in Earnings of 50% or Less Owned Companies | (4,944 | ) | (19,532 | ) | (15,069 | ) | (40,043 | ) | ||||||||
| Equity in Earnings of 50% or Less Owned Companies | 373 | 415 | 909 | 6,089 | ||||||||||||
| Net Loss | (4,571 | ) | (19,117 | ) | (14,160 | ) | (33,954 | ) | ||||||||
| Net Income Attributable to Noncontrolling Interests in Subsidiaries | — | 3 | — | 3 | ||||||||||||
| Net Loss Attributable to SEACOR Marine Holdings Inc. | $ | (4,571 | ) | $ | (19,120 | ) | $ | (14,160 | ) | $ | (33,957 | ) | ||||
| Net Loss Per Share: | ||||||||||||||||
| Basic | $ | (0.17 | ) | $ | (0.72 | ) | $ | (0.52 | ) | $ | (1.28 | ) | ||||
| Diluted | $ | (0.17 | ) | (0.72 | ) | $ | (0.52 | ) | (1.28 | ) | ||||||
| Weighted Average Common Stock and Warrants Outstanding: | ||||||||||||||||
| Basic | 27,137,873 | 26,664,745 | 26,981,004 | 26,522,808 | ||||||||||||
| Diluted | 27,137,873 | 26,664,745 | 26,981,004 | 26,522,808 | ||||||||||||
SEACOR MARINE HOLDINGS INC.
UNAUDITED CONSOLIDATED STATEMENTS OF INCOME (LOSS)
(in thousands, except statistics and per share data)
| Three Months Ended | |||||||||||||||||||||
| Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | |||||||||||||||||
| Time Charter Statistics: | |||||||||||||||||||||
| Average Rates Per Day | $ | 15,250 | $ | 14,314 | $ | 13,794 | $ | 13,340 | $ | 12,149 | |||||||||||
| Fleet Utilization | 78 | % | 76 | % | 76 | % | 79 | % | 77 | % | |||||||||||
| Fleet Available Days | 5,096 | 5,071 | 5,244 | 5,336 | 5,311 | ||||||||||||||||
| Operating Revenues: | |||||||||||||||||||||
| Time charter | $ | 60,804 | $ | 55,415 | $ | 54,789 | $ | 56,500 | $ | 49,504 | |||||||||||
| Bareboat charter | 364 | 360 | 376 | 332 | 48 | ||||||||||||||||
| Other marine services | 5,723 | 4,198 | 2,761 | 2,959 | 4,465 | ||||||||||||||||
| 66,891 | 59,973 | 57,926 | 59,791 | 54,017 | |||||||||||||||||
| Costs and Expenses: | |||||||||||||||||||||
| Operating: | |||||||||||||||||||||
| Personnel | 19,944 | 19,803 | 20,849 | ||||||||||||||||||
