Trico Marine Reports Third Quarter 1999 Results
HOUSTON, Oct. 28 /PRNewswire/ -- Trico Marine Services, Inc.
(Nasdaq: TMAR) today reported a net loss for the third quarter ended
September 30, 1999 of $7.8 million, or $0.28 per diluted share, compared to
net income of $2.6 million, or $0.13 per diluted share, for the third quarter
of 1998. Third quarter 1999 revenues were $27.6 million compared to
$43.0 million last year.
Trico's net loss for the third quarter resulted from decreases in average
day rates for all classes of the Company's vessels compared to the year-ago
period. Supply boat day rates in the Gulf of Mexico averaged $3,143 for the
quarter, compared to $6,408 for the same period last year, and $3,123 for the
second quarter of 1999. Average day rates for the North Sea fleet were also
lower, at $9,998 for the third quarter, compared to $14,072 for the third
quarter of 1998 and $10,093 for the second quarter of 1999. Day rates for
lift boats in the Gulf of Mexico averaged $4,372 in the third quarter of 1999
compared to $6,218 last year.
The utilization rate for Trico's Gulf of Mexico supply boats was 57% for
the third quarter 1999, compared to 53% for the year-ago period. Utilization
rates for both periods include the impact of dry-docking and vessel
refurbishment and the deactivation of 10 supply boats. Utilization of the
North Sea vessels was 85% in the third quarter, compared to 96% in the same
period last year, and lift boat utilization was 54%, compared to 55% in the
third quarter of 1998. During the third quarter, the Company deactivated two
of its smaller platform supply vessels in the North Sea.
For the first nine months of 1999, the Company reported a net loss before
extraordinary item of $24.2 million, or $1.01 per diluted share, on revenues
of $82.6 million. In the second quarter of 1999, an extraordinary one-time
charge of $1.8 million, net of taxes, was recorded related to the write-off of
unamortized debt issuance costs resulting from the prepayment of bank debt
with the proceeds of a new bank revolving credit agreement. After the
extraordinary charge, the net loss was $26.0 million, or $1.09 per diluted
share. The net loss for the first nine month period also included an
additional non-cash charge of $1.1 million in the second quarter related to
the write-down of the book value of an inactive vessel. This compares to net
income of $24.2 million, or $1.15 per diluted share, on revenues of
$144.9 million for the first nine months of 1998.
"We are encouraged by recent events in the U.S. Gulf of Mexico, which we
believe indicate the early signs of recovery," said Thomas E. Fairley,
president and chief executive officer. "The strong natural gas market, and
resulting increase in offshore drilling, is beginning to have a favorable
impact on vessel utilization and day rates. However, the North Sea, which was
slower to decline in 1998, continues to show weakness, and its recovery is
expected to lag that of the Gulf."
Fairley also noted that Trico's third quarter results improved from those
of the second quarter due to the delivery of two new vessels in July, modest
improvement in the utilization of the Gulf fleet and lower operating expenses. |
