SEACOR Marine Announces Third Quarter 2024 Results
HOUSTON, Oct. 30, 2024 (GLOBE NEWSWIRE) -- SEACOR Marine Holdings Inc. (NYSE: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 third quarter ended September 30, 2024.
SEACOR Marine's consolidated operating revenues for the third quarter of 2024 were $68.9 million, operating loss was $6.5 million, and direct vessel profit ("DVP")(1) was $16.0 million. This compares to consolidated operating revenues of $76.9 million, operating income of $9.8 million, and DVP of $36.8 million in the third quarter of 2023, and consolidated operating revenues of $69.9 million, operating loss of $3.9 million, and DVP of $20.3 million in the second quarter of 2024.
Notable third quarter items include:
10.4% decrease in revenues from the third quarter of 2023 and a 1.4% decrease from the second quarter of 2024.
Average day rates of $18,879, a 4.6% increase from the third quarter of 2023, and a 1.4% decrease from the second quarter of 2024.
67% utilization, a decrease from 73% in the third quarter of 2023 and a decrease from 69% in the second quarter of 2024.
DVP margin of 23.2%, a decrease from 47.8% in the third quarter of 2023 and a decrease from 29.1% in the second quarter of 2024, due in part to $8.3 million of drydocking and major repairs during the quarter compared to $2.0 million in the third quarter of 2023 and $8.5 million in the second quarter of 2024, all of which are expensed as incurred.
For the third quarter of 2024, net loss was $16.3 million ($0.59 loss per basic and diluted share). This compares to a net loss for the third quarter of 2023 of $0.9 million ($0.03 loss per basic and diluted share). Sequentially, the third quarter 2024 results compare to a net loss of $12.5 million ($0.45 earnings per basic and diluted share) in the second quarter of 2024.
Chief Executive Officer John Gellert commented:
"The third quarter results reflect overall lower utilization driven by our heavy 2024 maintenance schedule and softer than expected demand during the quarter, particularly in the U.S. Gulf of Mexico and the North Sea markets. While we made progress in remarketing and repositioning our available tonnage, these efforts reduced the utilization of these vessels during the quarter. Our utilization figures were also affected by continuing work on drydockings and major repairs, some of which experienced additional delays as a result of ongoing shipyard and vendor capacity issues. We continue to see challenges as shipyards and other vendors expand their support teams, expertise and production capacity to respond to demand growth. In addition to lower utilization, these results also reflect higher operating expenses, driven mostly by 9.9% higher crewing costs and 30.0% higher maintenance costs relative to the year to date third quarter of 2023, both of which we attribute primarily to increased industry demand and vendor capacity constraints. Nevertheless, our average day rates held steady and we continued to add charters that will contribute improvements to our utilization, with contracted revenue backlog, including options, in excess of $360.0 million.
In the near term, one of our premium liftboats located in the U.S. Gulf of Mexico will return to work in early November after being in the shipyard for maintenance since April. We are also seeing a stronger volume of inquiries for decommissioning work for our liftboats in the 2025-2026 timeframe, which is coming from both the U.S. Gulf of Mexico as well as international markets. We own one of the youngest and most fuel efficient and versatile fleets of offshore vessels in the world. Although demand for our services remains highly correlated to the underlying commodity prices, which have been very volatile during 2024, we are well positioned to capture attractive opportunities servicing offshore energy."___________________
(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
SEACOR MARINE HOLDINGS INC.UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME (LOSS)(in thousands, except share data)
Three Months Ended September 30,
Nine months ended September 30,
2024
2023
2024
2023
Operating Revenues
$
68,916
$
76,900
$
201,553
$
206,428
Costs and Expenses:
Operating
52,907
40,142
150,526
116,381
Administrative and general
11,019
12,300
33,825
37,636
Lease expense
364
651
1,331
2,069
Depreciation and amortization
12,928
13,462
38,749
40,799
77,218
66,555
224,431
196,885
Gains (Losses) on Asset Dispositions and Impairments, Net
1,821
(512
)
1,857
3,352
Operating (Loss) Income
(6,481
)
9,833
(21,021
)
12,895
Other Income (Expense):
Interest income
358
340
1,396
1,222
Interest expense
(10,127
)
(9,536
)
(30,626
)
(27,060
)
Loss on debt extinguishment
—
(2,004
)
—
(2,004
)
Derivative gains (losses), net
67
—
(372
)
—
Foreign currency (losses) gains, net
(1,717
)
571
(2,357
)
(857
)
Other, net
29
—
(66
)
—
(11,390
)
(10,629
)
(32,025
)
(28,699
)
Loss Before Income Tax (Benefit) Expense and Equity in Earnings of 50% or Less Owned Companies
(17,871
)
(796
)
(53,046
)
(15,804
)
Income Tax (Benefit) Expense
(513
)
2,360
(270
)
2,421
Loss Before Equity in Earnings of 50% or Less Owned Companies
(17,358
)
(3,156
)
(52,776
)
(18,225
)
Equity in Earnings of 50% or Less Owned Companies
1,012
2,273
878
3,182
Net Loss
$
(16,346
)
$
(883
)
$
(51,898
)
$
(15,043
)
Net Loss Per Share:
Basic
$
(0.59
)
$
(0.03
)
$
(1.88
)
$
(0.56
)
Diluted
$
(0.59
)
$
(0.03
)
$
(1.88
)
$
(0.56
)
Weighted Average Common Stock and Warrants Outstanding:
Basic
27,772,733
27,181,754
27,615,699
27,048,656
Diluted
27,772,733
27,181,754
27,615,699
27,048,656
SEACOR MARINE HOLDINGS INC.UNAUDITED CONSOLIDATED STATEMENTS OF INCOME (LOSS) (in thousands, except statistics and per share data)
Three Months Ended
Sep. 30, 2024
Jun. 30, 2024
Mar. 31, 2024
Dec. 31, 2023
Sep. 30, 2023
Time Charter Statistics:
Average Rates Per Day
$
18,879
$
19,141
$
19,042
$
18,031
$
18,046
Fleet Utilization
67
%
69
%
62
%
71
%
73
%
Fleet Available Days(2)
5,026
4,994
5,005
5,170
5,182
Operating Revenues:
Time charter
$
63,313
$
65,649
$
59,263
$
66,498
$
68,668
Bareboat charter
372
364
364
368
368
Other marine services
5,231
3,854
3,143
6,217
7,864
68,916
69,867
62,770
73,083
76,900
Costs and Expenses:
Operating:
Personnel
21,940
21,566
21,670
22,080
19,943
Repairs and maintenance
9,945
10,244
9,763
7,604
7,418
Drydocking
6,068
6,210
6,706
2,561
1,768
Insurance and loss reserves
2,584
3,099
1,738
2,944
1,833
Fuel, lubes and supplies
6,574
3,966
4,523
3,683
5,047
Other
5,796
4,435
3,699
4,397
4,133
52,907
49,520
48,099
43,269
40,142
Direct Vessel Profit(1)
16,009
20,347
14,671
29,814
36,758
Other Costs and Expenses:
Lease expense
364
486
481
679
651
Administrative and general
11,019
10,889
11,917
11,547
12,300
Depreciation and amortization
12,928
12,939
12,882
13,022
13,462
24,311
24,314
25,280
25,248
26,413
Gains (Losses) on Asset Dispositions and Impairments, Net
1,821
37
(1
)
18,057
(512
)
Operating (Loss) Income
(6,481
)
(3,930
)
(10,610
)
22,623
9,833
Other Income (Expense):
Interest income
358
445
593
222
340
Interest expense
(10,127
)
(10,190
)
(10,309
)
(10,444
)
(9,536
)
Derivative gains (losses), net
67
104
(543
)
608
—
Loss on debt extinguishment
—
—
—
—
(2,004
)
Foreign currency (losses) gains, net
(1,717
)
(560
)
(80
)
(1,276
)
571
Other, net
29
—
(95
)
—
—
(11,390
)
(10,201
)
(10,434
)
(10,890
)
(10,629
)
(Loss) Income Before Income Tax (Benefit) Expense and Equity in Earnings (Losses) of 50% or Less Owned Companies
(17,871
)
(14,131
)
(21,044
)
11,733
(796
)
Income Tax (Benefit) Expense
(513
)
(682
)
925
6,378
2,360
(Loss) Income Before Equity in Earnings (Losses) of 50% or Less Owned Companies
(17,358
)
(13,449
)
(21,969
)
5,355
(3,156
)
Equity in Earnings (Losses) of 50% or Less Owned Companies
1,012
966
(1,100
)
374
2,273
Net (Loss) Income
$
(16,346
)
$
(12,483
)
$
(23,069
)
$
5,729
$
(883
)
Net (Loss) Earnings Per Share:
Basic
$
(0.59
)
$
(0.45
)
$
(0.84
)
$
0.21
$
(0.03
)
Diluted
$
(0.59
)
$
(0.45
)
$
(0.84
)
$
0.20
$
(0.03
)
Weighted Average Common Stock and Warrants Outstanding:
Basic
27,773
27,729
27,344
27,182
27,182
Diluted
27,773
27,729
27,344
28,401
27,182
Common Shares and Warrants Outstanding at Period End
28,950
28,941
28,906
28,489
28,481
____________________(1) See full description of footnote above.(2) Includes available days for a bareboat charter for one PSV, which has been excluded from days worked and average day rates.
SEACOR MARINE HOLDINGS INC.UNAUDITED DIRECT VESSEL PROFIT ("DVP") BY SEGMENT(in thousands, except statistics)
Three Months Ended
Sep. 30, 2024
Jun. 30, 2024
Mar. 31, 2024
Dec. 31, 2023
Sep. 30, 2023
United States, primarily Gulf of Mexico
Time Charter Statistics:
Average rates per day worked
$
17,188
$
22,356
$
28,156
$
22,584
$
23,663
Fleet utilization
42
%
37
%
27
%
50
%
57
%
Fleet available days
920
921
927
1,152
1,196
Out-of-service days for repairs, maintenance and drydockings
116
179
137
61
151
Out-of-service days for cold-stacked status(2)
175
127
182
254
206
Operating Revenues:
Time charter
$
6,593
$
7,697
$
6,957
$
12,929
$
16,236
Other marine services
1,188
480
1,026
5,346
5,478
7,781
8,177
7,983
18,275
21,714
Direct Costs and Expenses:
Operating:
Personnel
6,297
6,284
5,781
6,906
6,712
Repairs and maintenance
1,655
1,879
1,404
819
1,560
Drydocking
2,615
2,570
1,968
303
462
Insurance and loss reserves
799
943
396
1,297
332
Fuel, lubes and supplies
964
866
667
1,032
958
Other
225
226
(171
)
475
375
12,555
12,768
10,045
10,832
10,399
Direct Vessel (Loss) Profit(1)
$
(4,774
)
$
(4,591
)
$
(2,062
)
$
7,443
$
11,315
Other Costs and Expenses:
Lease expense
$
140
$
141
$
138
$
141
$
116
Depreciation and amortization
3,194
3,194
2,750
3,479
3,810
Africa and Europe
Time Charter Statistics:
Average rates per day worked
$
18,875
$
18,580
$
15,197
$
15,233
$
15,388
Fleet utilization
77
%
74
%
76
%
82
%
84
%
Fleet available days
1,990
1,969
1,775
1,748
1,748
Out-of-service days for repairs, maintenance and drydockings
203
203
238
124
111
Out-of-service days for cold-stacked status
58
91
91
92
54
Operating Revenues:
Time charter
$
28,809
$
27,047
$
20,555
$
21,791
$
22,528
Other marine services
3,048
1,028
169
