full release, and it doesn't sound that bad
Trico Marine Reports 1998 Second Quarter Earnings
HOUSTON, July 28 /PRNewswire/ -- Trico Marine Services, Inc. (Nasdaq: TMAR) today announced net earnings for its second quarter ended June 30, 1998 of $11.7 million, or $0.56 per share (diluted), on revenues of $52.9 million. For the second quarter of 1997, net income was $8.0 million, or $0.47 per share (diluted), on revenues of $26.3 million. Net income for the first six months of 1998 was approximately $21.6 million, or $1.02 per share (diluted), on revenues of $101.8 million. For the first six months of 1997, net income was approximately $14.6 million, or $0.87 per share (diluted), on revenues of $49.8 million.
The improved earnings and higher revenues were due to the addition of North Sea operations, acquired in December 1997, growth in the Company's U.S. Gulf of Mexico fleet, and improved average day rates for supply boats compared to the year ago period. Utilization for the U.S. Gulf supply boat fleet was 70% for the quarter, compared to 84% for the second quarter of 1997, due to the Company's extensive fleet upgrade and refurbishment program. Utilization of the Company's lift boats was 54%, compared to 71% for the year ago quarter, due to the dry-docking, for a substantial portion of the quarter, of two of the Company's larger lift boats.
Thomas E. Fairley, president and chief executive officer, noted, "toward the end of the second quarter we began to experience softness in supply boat day rates in the U.S. Gulf as a result of the low oil prices and day rate reductions initiated by certain competitors. However, the acquisition of Saevik Supply in the North Sea at the end of last year, and the further growth of our international operations are benefiting Trico in this environment. Over 40% of second quarter revenues and EBITDA were generated by our North Sea fleet where the majority of the vessels are under longer-term contracts. Our other vessels working in the North Sea short-term market command top market day rates due to their capabilities and age."
Trico Marine provides marine support services to the oil and gas industry, primarily in the Gulf of Mexico, the North Sea and Latin America. The services provided by the Company's diversified fleet of vessels include the marine transportation of drilling materials, supplies and crews and support for the construction, installation, and maintenance and removal of offshore facilities.
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