Trico Marine Reports First Quarter 1999 Results
HOUSTON, April 28 /PRNewswire/ -- Trico Marine Services, Inc.
(Nasdaq: TMAR) today reported a net loss for the quarter ended March 31, 1999,
of $7.3 million, or $0.36 per diluted share, on revenues of $28.3 million,
compared to net income of $9.8 million, or $0.47 per diluted share, on
revenues of $48.9 million for the first quarter of 1998.
Trico's net loss for the first quarter 1999 resulted from decreases in
average day rates and utilization for all of the Company's vessel classes.
Supply boat day rates in the Gulf of Mexico averaged $3,662 for the quarter,
compared to $8,159 for the first quarter 1998 and $4,341 for the fourth
quarter 1998. Average day rates for the North Sea fleet also decreased to
$11,451 for the most recent quarter, compared to $13,421 for the first quarter
1998 and $15,674 for the fourth quarter 1998. Day rates for lift boats in the
Gulf of Mexico averaged $4,580 in the first quarter 1999, compared to
$6,717 in the first quarter 1998.
The utilization rate for Gulf of Mexico supply boats decreased to 56% for
the first quarter 1999, compared to 70% for the year-ago period. Drydocking
and refurbishment impacted the Company's supply boat utilization rates for
both periods, and deactivation, or stacking, of 10 supply boats impacted first
quarter 1999 utilization. Utilization of the North Sea vessels decreased to
87% in the most recent quarter, compared to 92% in the first quarter 1998.
North Sea utilization in the first quarter was adversely affected by vessel
downtime for repairs, maintenance and drydockings. Utilization of the
Company's lift boats also decreased to 47%, from 69% in the first quarter of
last year, due to a decline in construction and well maintenance activity and
the seasonal offshore slowdown.
"We are disappointed with our first quarter results," said Thomas E.
Fairley, Trico's President and Chief Executive Officer. "The decrease in Gulf
of Mexico activity resulting from low oil and gas prices continued to affect
vessel day rates and utilization in the first quarter. Additionally, in the
North Sea we experienced a significant decrease in day rates for our two large
anchor handling vessels which were working in the spot market. In response,
we pursued and were awarded firm contracts in Trinidad that commenced at the
end of March for both of these vessels.
"Utilization of the Gulf supply boats also reflected downtime on several
vessels for which we are completing drydocking and refurbishment projects
begun in 1998 and 10 vessels that we elected to stack," Fairley continued.
"Now that we have refurbished the majority of our Gulf supply boats, we can
reduce maintenance capital spending to the level required for regulatory
mandated drydockings."
Fairley added that the Company's future results will benefit from the
addition in the second quarter 1999 of two new vessels to its fleet. "In May,
we will take delivery of the Hondo River, the second of two 230-foot,
deepwater supply vessels, and in June, the Northern Admiral, a 275-foot,
multi-purpose anchor handling, towing and supply vessel, will be placed into
service in Norway. We also should benefit from full utilization of the
Stillwater River SWATH vessel, which began service in Brazil in late January." |
