HOUSTON, Feb. 29, 2024 (GLOBE NEWSWIRE) — SEACOR Marine Holdings Inc. (NYSE:SMHI) (the “Company” or “SEACOR Marine”), a leading provider of marine and support transportation services to offshore energy facilities worldwide, today announced results for its fourth quarter ended December 31, 2023.
SEACOR Marine’s consolidated operating revenues for the fourth quarter of 2023 were $73.1 million, operating income was $22.6 million, and direct vessel profit (“DVP”)(1) was $29.8 million. This compares to consolidated operating revenues of $57.9 million, operating loss of $10.5 million, and DVP of $13.6 million in the fourth quarter of 2022, and consolidated operating revenues of $76.9 million, operating income of $9.8 million, and DVP of $36.8 million in the third quarter of 2023.
Notable fourth quarter items include:
26.2% improvement in revenues from the fourth quarter of 2022 and a 5.0% decrease from the third quarter of 2023.
Average day rates of $18,031, a 30.7% improvement from the fourth quarter of 2022, and essentially flat from the third quarter of 2023.
DVP margin of 40.8%, increasing from 23.5% in the fourth quarter of 2022, and declining from 47.8% in the third quarter of 2023.
Gross proceeds on the sales of two non-core vessels for total proceeds of $36.5 million and gains of $18.3 million.
For the fourth quarter of 2023, net income was $5.7 million ($0.21 earnings per basic share and $0.20 earnings per diluted share). This compares to a net loss for the fourth quarter of 2022 of $13.3 million ($0.50 loss per basic and diluted share). Sequentially, fourth quarter 2023 results compare to a net loss of $0.9 million ($0.03 loss per basic and diluted share) in the third quarter of 2023.
Chief Executive Officer John Gellert commented:
“I am pleased with the Company’s fourth quarter results, with average day rates holding from the recent high of the third quarter of 2023, and utilization softening marginally as we entered our seasonally lower winter season. DVP for the quarter maintained much of progress made in recent quarters and expanded significantly when compared to the fourth quarter of 2022.
All of our business segments continued to deliver positive results, even as some of our customers paused project activity for the winter, most notably in U.S. windfarms. After completing temporary repairs during this quarter, we also saw the return to service of one of our premium liftboats in the U.S. We expect to have all four large liftboats operating for most of 2024, which should be a meaningful contributor to our revenue generating capacity. Tendering activity remains high, particularly in international markets, and we expect to continue to charter vessels at improved terms and pricing as they roll off their contracts. As planned, we are taking advantage of the winter months for scheduled maintenance and vessel repositioning in order to maximize utilization the rest of the year.
We also completed the sales of a liftboat and a FSV during the fourth quarter, both considered non-core assets. The sales generated total proceeds of $36.5 million and gains of $18.3 million. These assets were not expected to have a meaningful impact on revenues or DVP in 2024, and were sold at compelling values.
Looking forward, we continue to see strong demand for our fleet in 2024. Recent announcements about project cancellations in the Middle East and U.S. wind are not expected to impact our vessels engaged in those areas, and we see growing demand from other regions.
Finally, we recently announced our commitment to acquire four state-of-the-art energy storage systems, which will be used to upgrade four of our newest PSVs to hybrid power. We currently plan to conduct these upgrades as the systems deliver in late 2024 and 2025. Once installed, more than 50% of our PSV fleet will be hybrid powered, furthering our efforts to enhance operational efficiency and reduce the environmental impact of our fleet.”
___________________
(1
)
Direct vessel profit (defined as operating revenues less operating costs and expenses, “DVP”) is the Company’s measure of segment profitability. DVP is a critical financial measure used by the Company to analyze and compare the operating performance of its regions, without regard to financing decisions (depreciation and interest expense for owned vessels vs. lease expense for lease vessels). DVP is also useful when comparing the Company’s global fleet performance against those of our competitors who may have differing fleet financing structures. DVP has material limitations as an analytical tool in that it does not reflect all of the costs associated with the ownership and operation of our fleet, and it should not be considered in isolation or used as a substitute for our results as reported under GAAP. See page 4 for reconciliation of DVP to GAAP Operating Income (Loss), its most comparable GAAP measure.
SEACOR Marine provides global marine and support transportation services to offshore energy facilities worldwide. SEACOR Marine operates and manages a diverse fleet of offshore support vessels that deliver cargo and personnel to offshore installations, including offshore wind farms; assist offshore operations for production and storage facilities; provide construction, well work-over, offshore wind farm installation and decommissioning support; carry and launch equipment used underwater in drilling and well installation, maintenance, inspection and repair; and handle anchors and mooring equipment for offshore rigs and platforms. Additionally, SEACOR Marine’s vessels provide emergency response services and accommodations for technicians and specialists.
Certain statements discussed in this release as well as in other reports, materials and oral statements that the Company releases from time to time to the public constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Generally, words such as “anticipate,” “estimate,” “expect,” “project,” “intend,” “believe,” “plan,” “target,” “forecast” and similar expressions are intended to identify forward-looking statements. Such forward-looking statements concern management’s expectations, strategic objectives, business prospects, anticipated economic performance and financial condition and other similar matters. Forward-looking statements are inherently uncertain and subject to a variety of assumptions, risks and uncertainties that could cause actual results to differ materially from those anticipated or expected by the management of the Company. These statements are not guarantees of future performance and actual events or results may differ significantly from these statements. Actual events or results are subject to significant known and unknown risks, uncertainties and other important factors, many of which are beyond the Company’s control and are described in the Company’s filings with the SEC. It should be understood that it is not possible to predict or identify all such factors. Given these risk factors, investors and analysts should not place undue reliance on forward-looking statements. Forward-looking statements speak only as of the date of the document in which they are made. The Company disclaims any obligation or undertaking to provide any updates or revisions to any forward-looking statement to reflect any change in the Company’s expectations or any change in events, conditions or circumstances on which the forward-looking statement is based, except as required by law. It is advisable, however, to consult any further disclosures the Company makes on related subjects in its filings with the Securities and Exchange Commission, including Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K (if any). These statements constitute the Company’s cautionary statements under the Private Securities Litigation Reform Act of 1995.
Please visit SEACOR Marine’s website at www.seacormarine.com for additional information.
For all other requests, contact InvestorRelations@seacormarine.com
SEACOR MARINE HOLDINGS INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME (LOSS)
(in thousands, except share data)
Three Months Ended December 31,
Year ended December 31,
2023
2022
2023
2022
Operating Revenues
$
73,083
$
57,926
$
279,511
$
217,325
Costs and Expenses:
Operating
43,269
44,338
159,650
171,985
Administrative and general
11,547
10,799
49,183
40,911
Lease expense
679
633
2,748
3,869
Depreciation and amortization
13,022
13,624
53,821
55,957
68,517
69,394
265,402
272,722
Gains on Asset Dispositions and Impairments, Net
18,057
1,017
21,409
1,398
Operating Income (Loss)
22,623
(10,451
)
35,518
(53,999
)
Other Income (Expense):
Interest income
222
688
1,444
784
Interest expense
(10,444
)
(8,456
)
(37,504
)
(29,706
)
Gain (loss) on debt extinguishment
—
10,429
(2,004
)
10,429
Derivative gains, net
608
—
608
—
Foreign currency (losses) gains, net
(1,276
)
(2,646
)
(2,133
)
1,659
Other, net
—
137
—
755
(10,890
)
152
(39,589
)
(16,079
)
Income (Loss) Before Income Tax Expense and Equity in Earnings of 50% or Less Owned Companies
11,733
(10,299
)
(4,071
)
(70,078
)
Income Tax Expense
6,378
4,219
8,799
8,582
Income (Loss) Before Equity in Earnings of 50% or Less Owned Companies
5,355
(14,518
)
(12,870
)
(78,660
)
Equity in Earnings of 50% or Less Owned Companies
374
1,176
3,556
7,011
Net Income (Loss)
5,729
(13,342
)
(9,314
)
(71,649
)
Net Income Attributable to Noncontrolling Interests in Subsidiaries
—
—
—
1
Net Income (Loss) Attributable to SEACOR Marine Holdings Inc.
$
5,729
$
(13,342
)
$
(9,314
)
$
(71,650
)
Net Earnings (Loss) Per Share:
Basic
$
0.21
$
(0.50
)
$
(0.34
)
$
(2.69
)
Diluted
$
0.20
$
(0.50
)
$
(0.34
)
$
(2.69
)
Weighted Average Common Stock and Warrants Outstanding:
Basic
27,182,496
26,727,864
27,082,391
26,626,179
Diluted
28,400,684
26,727,864
27,082,391
26,626,179
SEACOR MARINE HOLDINGS INC.
UNAUDITED CONSOLIDATED STATEMENTS OF INCOME (LOSS)
(in thousands, except statistics and per share data)
Three Months Ended
Dec. 31, 2023
Sep. 30, 2023
Jun. 30, 2023
Mar. 31, 2023
Dec. 31, 2022
Time Charter Statistics:
Average Rates Per Day
$
18,031
$
18,046
$
15,250
$
14,314
$
13,794
Fleet Utilization
71
%
73
%
78
%
76
%
76
%
Fleet Available Days
5,170
5,182
5,096
5,071
5,244
Operating Revenues:
Time charter
$
66,498
$
68,668
$
60,804
$
55,415
$
54,789
Bareboat charter
368
368
364
360
376
Other marine services
6,217
7,864
7,151
5,434
2,761
73,083
76,900
68,319
61,209
57,926
Costs and Expenses:
Operating:
Personnel
22,080
19,943
19,944
19,803
20,849
Repairs and maintenance
7,604
7,418
5,793
6,011
8,948
Drydocking
2,561
1,768
2,256
13
1,667
Insurance and loss reserves
2,944
1,833
2,390
2,789
3,381
Fuel, lubes and supplies
3,683
5,047
3,638
4,819
5,794
Other
4,397
4,133
3,709
5,074
3,699
43,269
40,142
37,730
38,509
44,338
Direct Vessel Profit (1)
29,814
36,758
30,589
22,700
13,588
Other Costs and Expenses:
Lease expense
679
651
698
720
633
Administrative and general
11,547
12,300
13,704
11,632
10,799
Depreciation and amortization
13,022
13,462
13,575
13,762
13,624
25,248
26,413
27,977
26,114
25,056
Gains (Losses) on Asset Dispositions and Impairments, Net
18,057
(512
)
265
3,599
1,017
Operating Income (Loss)
22,623
9,833
2,877
185
(10,451
)
Other Income (Expense):
Interest income
222
340
422
460
688
Interest expense
(10,444
)
(9,536
)
(8,736
)
(8,788
)
(8,456
)
Derivative gains, net
608
—
—
—
—
(Loss) gain on debt extinguishment
—
(2,004
)
—
—
10,429
Foreign currency (losses) gains, net
(1,276
)
571
(603
)
(825
)
(2,646
)
Other, net
—
—
—
—
137
(10,890
)
(10,629
)
(8,917
)
(9,153
)
152
Income (Loss) Before Income Tax Expense (Benefit) and Equity in Earnings of 50% or Less Owned Companies
11,733
(796
)
(6,040
)
(8,968
)
(10,299
)
Income Tax Expense (Benefit)
6,378
2,360
(1,096
)
1,157
4,219
Income (Loss) Before Equity in Earnings of 50% or Less Owned Companies
5,355
(3,156
)
(4,944
)
(10,125
)
(14,518
)
Equity in Earnings of 50% or Less Owned Companies
374
2,273
373
536
1,176
Net Income (Loss)
$
5,729
$
(883
)
$
(4,571
)
$
(9,589
)
$
(13,342
)
Net Earnings (Loss) Per Share:
Basic
$
0.21
$
(0.03
)
$
(0.17
)
$
(0.36
)
$
(0.50
)
Diluted
$
0.20
$
(0.03
)
$
(0.17
)
$
(0.36
)
$
(0.50
)
Weighted Average Common Stock and Warrants Outstanding:
Basic
27,182
27,182
27,138
26,822
26,728
Diluted
28,401
27,182
27,138
26,822
26,728
Common Shares and Warrants Outstanding at Period End
28,489
28,481
28,481
28,428
28,142
(1) See full description of footnote above.
SEACOR MARINE HOLDINGS INC.
UNAUDITED DIRECT VESSEL PROFIT (“DVP”) BY SEGMENT
(in thousands, except statistics)
Three Months Ended
Dec. 31, 2023
Sep. 30, 2023
Jun. 30, 2023
Mar. 31, 2023
Dec. 31, 2022
United States, primarily Gulf of Mexico
Time Charter Statistics:
Average rates per day worked
$
22,584
$
23,663
$
16,115
$
18,359
$
22,563
Fleet utilization
50
%
57
%
35
%
35
%
57
%
Fleet available days
1,152
1,196
1,080
1,015
1,288
Out-of-service days for repairs, maintenance and drydockings
61
151
229
112
108
Out-of-service days for cold-stacked status (2)
254
206
173
211
242
Operating Revenues:
Time charter
$
12,929
$
16,236
$
6,121
$
6,564
$
16,574
Other marine services
5,346
5,478
3,004
3,850
2,916
18,275
21,714
9,125
10,414
19,490
Direct Costs and Expenses:
Operating:
Personnel
6,906
6,712
5,957
6,535
7,262
Repairs and maintenance
819
1,560
1,573
1,194
2,666
Drydocking
303
462
1,506
43
472
Insurance and loss reserves
1,297
332
1,082
1,041
2,022
Fuel, lubes and supplies
1,032
958
924
783
746
Other
475
375
346
231
416
10,832
10,399
11,388
9,827
13,584
Direct Vessel Profit (Loss) (1)
$
7,443
$
11,315
$
(2,263
)
$
587
$
5,906
Other Costs and Expenses:
Lease expense
$
141
$
116
$
143
$
136
$
138
Depreciation and amortization
3,479
3,810
3,861
3,535
3,912
Africa and Europe
Time Charter Statistics:
Average rates per day worked
$
15,233
$
15,388
$
14,982
$
12,835
$
11,241
Fleet utilization
82
%
84
%
94
%
87
%
82
%
Fleet available days
1,748
1,748
1,729
1,710
1,656
Out-of-service days for repairs, maintenance and drydockings
124
111
58
118
125
Out-of-service days for cold-stacked status (3)
92
54
—
—
—
Operating Revenues:
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