Trico Marine Reports Full Year 1998 and Fourth Quarter Earnings
HOUSTON, Feb. 17 /PRNewswire/ -- Trico Marine Services, Inc.
(Nasdaq: TMAR) today announced net income for the year ended
December 31, 1998, of approximately $25.3 million, or $1.20 per share
(diluted), on revenues of $186.2 million, compared to net income of
approximately $35.3 million, or $2.11 per share (diluted), on revenues of
$125.5 million for 1997. For the fourth quarter, net income was $1.1 million,
or $0.05 per share (diluted), on revenues of $41.4 million. This compares to
net income of $10.9 million, or $0.61 per share (diluted), on revenues of
$41.6 million, for the fourth quarter last year.
The increase in revenues for 1998 was due to the inclusion of the
Company's North Sea operations, which were acquired in December 1997. The
results for the fourth quarter and the year were adversely impacted by
decreased utilization and day rates for supply boats in the U.S. Gulf of
Mexico. In the fourth quarter and full year 1998, the Company incurred higher
depreciation, amortization and interest expense associated with the
acquisition of North Sea operations and the Company's vessel upgrade and
construction programs.
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 57% for the
quarter, compared to 80% for the fourth quarter of 1997. Day rates for the
Company's U.S. Gulf supply boats averaged $4,341 in the fourth quarter of
1998, compared to $8,037 for the fourth quarter last year. Day rates for the
North Sea fleet averaged $15,674 for the 1998 fourth quarter, compared to an
average of $14,056 for December 1997, the first full month of operations after
the fleet was acquired. Utilization for the quarter was 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 74% in the fourth
quarter of 1998, compared to 71% in the fourth quarter of 1997. Lift boat day
rates averaged $5,802 in the fourth quarter of 1998, compared to $6,694 in the
year-ago period.
"During the fourth quarter, we continued to experience deterioration in
day rates for all vessel classes operating in the U.S. Gulf, particularly the
supply boats," said Thomas E. Fairley, president and chief executive officer.
"This is due to the overall decrease in industry activity offshore, resulting
from the low oil prices and the increased competitive environment caused by
the market entry of newly constructed vessels. These conditions continue to
characterize the U.S. Gulf market.
"Results from our North Sea operations have been outstanding thus far,"
Fairley continued. "However, we expect average day rates and utilization in
the North Sea to decrease in 1999, although not to the extent they have in the
U.S. Gulf.
"As we previously reported, Trico is completing a major upgrade and
refurbishment program covering about 70% of its Gulf supply boats," Fairley
added. "In the near-term, the downtime required for this program has
adversely affected our vessel utilization. However, the program has enabled
us to extend the vessels' service lives and significantly reduce our planned
capital expenditures in 1999 and beyond. As a result, capital expenditures
for maintenance can be limited to regulatory-mandated vessel dry-dockings."
Fairley noted that 1998 was a significant year for the Company in terms of
capital investment. "Not only did we invest in our existing fleet, we also
completed construction of four new vessels -- one in the North Sea, a 276-foot
platform supply vessel which began a three-year contract in March, two vessels
for the Brazilian market and one for the deepwater Gulf market," he said.
"The Brazilian vessels included the SWATH (small water plane area twin-hull)
250-passenger crew boat, which began a five-year contract for Petrobras in
January 1999. In December, we took delivery of a 230-foot vessel with dynamic
positioning, which began a charter contract in the Gulf at an attractive day
rate. At the beginning of the second quarter, we will take delivery of a
second 230-foot deepwater vessel, and in June, we will complete construction
in Norway of the Northern Admiral, a 275-foot multi-service anchor
handling/tug supply vessel. These investments help reposition Trico in new
and different markets around the world." |
