Earnings, barely--is there a conference call?
Trico Marine Reports 1998 Third Quarter Earnings
HOUSTON, Oct. 28 /PRNewswire/ -- Trico Marine Services, Inc.
(Nasdaq: TMAR) today announced net earnings for its third quarter ended
September 30, 1998, of $2.6 million, or $0.13 per share (diluted), on revenues
of $43.0 million. This compares to net income of $9.8 million, or $0.58 per
share (diluted), on revenues of $34.1 million, for the third quarter last
year. Net income for the first nine months of 1998 was approximately
$24.2 million, or $1.15 per share (diluted), on revenues of $144.9 million,
compared to net income of approximately $24.4 million, or $1.45 per share
(diluted), on revenues of $83.9 million, last year.
While third quarter revenues and earnings were bolstered by the addition
of North Sea operations, which were acquired in December 1997, results were
adversely impacted by decreased utilization and day rates for supply boats in
the U.S. Gulf of Mexico. The Company's fleet upgrade and refurbishment
program, combined with an industry-wide decrease in vessel demand in the U.S.
Gulf resulted in a decline in utilization for Trico's Gulf supply boat fleet
to 53% for the quarter, compared to 85% for the third quarter of 1997. Day
rates for the U.S. Gulf supply boats averaged $6,408 in the third quarter of
1998, compared to $7,590 for the third quarter last year.
Day rates for the North Sea fleet averaged $14,072, compared to
$15,142 and $13,421 for the second quarter and first quarter of 1998,
respectively. Utilization for the quarter remained strong, at 96%, for the
Company's 17 platform supply and anchor handling tug/supply vessels operating
in the North Sea.
Utilization of the Company's U.S. Gulf lift boats was 55%, compared to
76% for the year ago quarter. During September, utilization of the lift boats
averaged 14% due to weather downtime caused by tropical storms and hurricanes
in the U.S. Gulf. Lift boat day rates averaged $6,218 in the third quarter of
1998, compared to $6,013 in the year ago period.
"We are in the final stages of completing the fleet upgrade and
refurbishment program for our U.S. supply boat fleet, and a number of Trico's
vessels were in the shipyard for scheduled drydocking and upgrading during the
third quarter," said Thomas E. Fairley, president and chief executive officer.
"This program, which will be largely completed by November 1998, will enhance
the capabilities and extend the service lives of about 70% of our existing
51 U.S. Gulf supply boats. While the vessel downtime associated with this
program resulted in lower utilization rates for our domestic supply boats this
year, we believe the long-term benefits are significant. This program will
result not only in our company having the best maintained and most reliable
fleet in the Gulf, but will also result in much lower capital maintenance
spending in the future."
Fairley also noted that the Company experienced lower utilization for the
available vessels due to decreased industry demand. "At the end of the second
quarter, we began to experience softness in supply boat day rates and
utilization in the U.S. Gulf as a result of low oil prices and day rate
reductions initiated by certain competitors," he said.
Looking ahead, Fairley said future operations should benefit from long-
term contracts for two new vessels, which begin service in November 1998. The
SWATH ferry vessel is expected to begin operations, transporting personnel for
Petrobras under a five-year charter, and a new 230-foot supply vessel will
begin a three-year contract in the U.S. Gulf. The Company will also take
delivery of a second 230-foot, deepwater supply vessel in the first quarter of
1999, and a 275-foot technologically advanced anchor handling towing and
supply vessel in the second quarter of 1999. |
