GulfMark Offshore Inc. (GLF, Financial) filed Quarterly Report for the period ended 2009-09-30.
GulfMark Offshore Inc. is a corporation that provides offshore marine services primarily to companies involved in offshore exploration and production of oil and natural gas. Their vessels transport drilling materials supplies and personnel to offshore facilities as well as move and position drilling structures. Gulfmark Offshore Inc. has a market cap of $749.4 million; its shares were traded at around $29.01 with a P/E ratio of 4.3 and P/S ratio of 1.8. Gulfmark Offshore Inc. had an annual average earning growth of 38.2% over the past 5 years.
Revenues for our Southeast Asia based fleet decreased by $2.0 million to $19.1 million in the third quarter of 2009. Utilization decreased from 97.2% in the third quarter of 2008 to 85.8% in the current year quarter which decreased revenue by $2.1 million. Capacity increased revenue by $1.2 million as a result of the additions of two vessels in 2009, and the full year effect of the addition of a vessel in the third quarter of 2008. This is partially offset by the sale of four of our older vessels in 2008. Even though day rates increased from the prior year quarter, the negative effect of the mix of days worked to vessels on lower day rates reduced revenue by $1.1 million. Operating income was $13.2 million in the third quarter of 2009 compared to $17.1 million in
Our year to date revenue increased 5% or $14.4 million year over year. The increase was due mainly to the Rigdon Acquisition, which contributed $57.8 million to the increase. Throughout 2009, we also added five new vessels that were under construction at the end of 2008 and we experienced the loss of revenue from six vessels that were sold in 2008 and early 2009. The net reduction in vessel count reduced revenue by $0.1 million. As a result of the weaker global economy overall utilization decreased from 93.1% in the nine month period of 2008 to 82.9% in the same period of 2009, which reduced revenue by $12.2 million. Day rates decreased from $19,963 in the nine months ended September 30, 2008, to $18,961 in the same period of 2009. The combination of day rates and currency exchange rates resulted in a $31.1 million decrease in revenue.
North Sea revenue decreased 24%, or $42.2 million in 2009 compared to 2008. The effect of the strengthening of the U.S. Dollar and the decrease in day rates from $23,389 in 2008 to $20,820 in 2009 contributed $27.3 million to the decrease in revenue. Capacity impact decreased revenue by $11.4 million related primarily to the full year effect of the 2008 vessel sales and the additional vessel sale in 2009. In 2008, we also mobilized two vessels to other regions. Overall utilization decreased from 93.9% in 2008 to 89.3% in the current year, representing $3.5 million in lower revenue. Operating income decreased by $30.3 million compared to 2008, resulting primarily from the decrease in revenue coupled with the decrease of $9.0 million of gains on asset sales, offset by lower operating and general and administrative costs.
Revenue for our Southeast Asia based fleet decreased by $1.2 million, from $57.5 million in the first nine months of 2008 to $56.3 million in the same 2009 period. Capacity had a positive impact of $3.8 million on revenue as a result of the two new vessels added in 2009 and the full year effect of the two vessels added in 2008. Offsetting the addition was the disposal of five vessels and the mobilization of a vessel to the Americas region in 2008. Overall utilization decreased from 93.2% to 88.9%, representing $3.2 million in lower revenue. Day rates increased from $17,062 in 2008 to $21,033 in 2009, however revenue decreased $1.8 million as the mix of days worked related to high rate vessels was negative. Operating income decreased from $47.0 million in 2008 to $42.0 million in 2009 due to the decrease in revenues and the decrease of the gain on asset sales coupled with higher drydock costs, which were offset by lower operating costs. Drydock expense increased by $1.8 million due to 42 additional drydock days in 2009.
Our Americas region revenue increased $57.7 million, from $59.2 million in 2008 to $117.0 million in 2009. The increase in revenue is due primarily to the July 1, 2008, Rigdon Acquisition, which contributed $57.8 million to the increase. Also contributing $7.5 million to the increase was the mobilization of two vessels into the region. Rig utilization has declined significantly in the Gulf of Mexico which has reduced our utilization from 91.7% in 2008 to 76.2% in 2009, representing $5.5 million in lower revenue. Day rates increased slightly, but the effect of currency and overall mix of days worked related to higher day rate vessels resulted in a $2.1 million decrease in revenue. Excluding the $46.2 million impairment charge, operating income increased $10.7 million from 2008 resulting primarily from the effect of the Rigdon Acquisition.
Read the The complete ReportGLF is in the portfolios of Michael Price of MFP Investors LLC, Kenneth Fisher of Fisher Asset Management, LLC.
GulfMark Offshore Inc. is a corporation that provides offshore marine services primarily to companies involved in offshore exploration and production of oil and natural gas. Their vessels transport drilling materials supplies and personnel to offshore facilities as well as move and position drilling structures. Gulfmark Offshore Inc. has a market cap of $749.4 million; its shares were traded at around $29.01 with a P/E ratio of 4.3 and P/S ratio of 1.8. Gulfmark Offshore Inc. had an annual average earning growth of 38.2% over the past 5 years.
Highlight of Business Operations:
Revenues in the North Sea region decreased by $18.4 million, or 31%, to $40.7 million in the third quarter of 2009. The combination of the strengthening of the U.S. Dollar and the decrease in day rates from $23,449 in the third quarter of 2008 to $20,171 in the current year quarter, contributed $10.3 million to the decrease in revenue. The region also experienced a decrease of $6.7 million in capacity resulting primarily from the sale of two vessels and the decision to remove a vessel from service in 2009. Utilization decreased from 94.1% in the third quarter of 2008 to 90.5% in the current quarter, decreasing revenue by $1.4 million. Operating income decreased $14.1 million from the prior year quarter due mainly to the decrease in revenue offset by lower operating costs. Drydock expense increased by $1.2 million due to 36 additional drydock days. Depreciation expense decreased by $1.0 million mainly due to fewer vessels.Revenues for our Southeast Asia based fleet decreased by $2.0 million to $19.1 million in the third quarter of 2009. Utilization decreased from 97.2% in the third quarter of 2008 to 85.8% in the current year quarter which decreased revenue by $2.1 million. Capacity increased revenue by $1.2 million as a result of the additions of two vessels in 2009, and the full year effect of the addition of a vessel in the third quarter of 2008. This is partially offset by the sale of four of our older vessels in 2008. Even though day rates increased from the prior year quarter, the negative effect of the mix of days worked to vessels on lower day rates reduced revenue by $1.1 million. Operating income was $13.2 million in the third quarter of 2009 compared to $17.1 million in
Our year to date revenue increased 5% or $14.4 million year over year. The increase was due mainly to the Rigdon Acquisition, which contributed $57.8 million to the increase. Throughout 2009, we also added five new vessels that were under construction at the end of 2008 and we experienced the loss of revenue from six vessels that were sold in 2008 and early 2009. The net reduction in vessel count reduced revenue by $0.1 million. As a result of the weaker global economy overall utilization decreased from 93.1% in the nine month period of 2008 to 82.9% in the same period of 2009, which reduced revenue by $12.2 million. Day rates decreased from $19,963 in the nine months ended September 30, 2008, to $18,961 in the same period of 2009. The combination of day rates and currency exchange rates resulted in a $31.1 million decrease in revenue.
North Sea revenue decreased 24%, or $42.2 million in 2009 compared to 2008. The effect of the strengthening of the U.S. Dollar and the decrease in day rates from $23,389 in 2008 to $20,820 in 2009 contributed $27.3 million to the decrease in revenue. Capacity impact decreased revenue by $11.4 million related primarily to the full year effect of the 2008 vessel sales and the additional vessel sale in 2009. In 2008, we also mobilized two vessels to other regions. Overall utilization decreased from 93.9% in 2008 to 89.3% in the current year, representing $3.5 million in lower revenue. Operating income decreased by $30.3 million compared to 2008, resulting primarily from the decrease in revenue coupled with the decrease of $9.0 million of gains on asset sales, offset by lower operating and general and administrative costs.
Revenue for our Southeast Asia based fleet decreased by $1.2 million, from $57.5 million in the first nine months of 2008 to $56.3 million in the same 2009 period. Capacity had a positive impact of $3.8 million on revenue as a result of the two new vessels added in 2009 and the full year effect of the two vessels added in 2008. Offsetting the addition was the disposal of five vessels and the mobilization of a vessel to the Americas region in 2008. Overall utilization decreased from 93.2% to 88.9%, representing $3.2 million in lower revenue. Day rates increased from $17,062 in 2008 to $21,033 in 2009, however revenue decreased $1.8 million as the mix of days worked related to high rate vessels was negative. Operating income decreased from $47.0 million in 2008 to $42.0 million in 2009 due to the decrease in revenues and the decrease of the gain on asset sales coupled with higher drydock costs, which were offset by lower operating costs. Drydock expense increased by $1.8 million due to 42 additional drydock days in 2009.
Our Americas region revenue increased $57.7 million, from $59.2 million in 2008 to $117.0 million in 2009. The increase in revenue is due primarily to the July 1, 2008, Rigdon Acquisition, which contributed $57.8 million to the increase. Also contributing $7.5 million to the increase was the mobilization of two vessels into the region. Rig utilization has declined significantly in the Gulf of Mexico which has reduced our utilization from 91.7% in 2008 to 76.2% in 2009, representing $5.5 million in lower revenue. Day rates increased slightly, but the effect of currency and overall mix of days worked related to higher day rate vessels resulted in a $2.1 million decrease in revenue. Excluding the $46.2 million impairment charge, operating income increased $10.7 million from 2008 resulting primarily from the effect of the Rigdon Acquisition.
Read the The complete ReportGLF is in the portfolios of Michael Price of MFP Investors LLC, Kenneth Fisher of Fisher Asset Management, LLC.
