SEACOR Holdings Announces Results for Its Second Quarter and Six Months Ended June 30, 2016
(firmenpresse) - FORT LAUDERDALE, FL -- (Marketwired) -- 08/01/16 -- SEACOR Holdings Inc. (NYSE: CKH) (the "Company") today announced its results for its second quarter and six months ended June 30, 2016.
For the quarter ended June 30, 2016, net loss attributable to SEACOR Holdings Inc. was $55.2 million ($3.26 per diluted share). For the six months ended June 30, 2016, net loss attributable to SEACOR Holdings Inc. was $82.3 million ($4.88 per diluted share). Results attributable to SEACOR Holdings Inc. for the six months ended June 30, 2016 included:
low utilization of equipment as a consequence of continuing difficult market conditions for Offshore Marine Services and, to a lesser extent, Inland River Services;
a net loss of $28.2 million ($1.67 per diluted share) as a result of a decline in the fair market value of the Company''s marketable security position in Dorian LPG Ltd ("Dorian");
a net loss of $13.9 million ($0.82 per diluted share) as a result of Offshore Marine Services'' impairment charges primarily associated with its liftboat fleet;
a net loss of $4.2 million ($0.25 per diluted share) to reserve for one of the Company''s notes receivable from third parties following a decline in the underlying collateral value; and
a net loss of $3.0 million ($0.18 per diluted share) related to Offshore Marine Services'' proportionate share of impairment charges associated with its joint ventured fleet.
For the preceding quarter ended March 31, 2016, net loss attributable to SEACOR Holdings Inc. was $27.2 million ($1.62 per diluted share). A comparison of results for the quarter ended June 30, 2016 with the preceding quarter ended March 31, 2016 is included in the "Highlights for the Quarter" discussion below.
For the quarter ended June 30, 2015, net income attributable to SEACOR Holdings Inc. was $0.7 million ($0.04 per diluted share). For the six months ended June 30, 2015, net loss attributable to SEACOR Holdings Inc. was $18.9 million ($1.06 per diluted share).
- Operating loss was $34.5 million compared with $16.6 million in the preceding quarter. As a consequence of continuing difficult market conditions, the Company recognized impairment charges in the second quarter of $20.9 million primarily associated with its liftboat fleet. Operating income (loss) before depreciation and amortization ("OIBDA" - see disclosure related to Non-GAAP measures in the segment information tables herein), excluding impairment charges, was $1.7 million on operating revenues of $57.3 million compared with $(1.3) million on operating revenues of $59.9 million in the preceding quarter.
Excluding wind farm utility vessels but including cold-stacked vessels (those that are not currently available for active service), utilization of the fleet decreased from 52% to 50%. Average rates per day worked decreased by 2% from $10,545 to $10,354. Days available for charter during the second quarter were approximately the same as the preceding quarter. This release includes a table presenting time charter operating data by vessel class.
Operating results in the U.S. Gulf of Mexico, excluding losses on asset dispositions and impairments, were $0.6 million higher compared with the preceding quarter. Time charter revenues for the U.S. anchor handling towing supply vessels were $2.4 million lower primarily due to weaker market conditions. Time charter revenues for other vessel classes were approximately the same as the preceding quarter. Operating expenses were $2.1 million lower compared with the preceding quarter, primarily due to savings from cold-stacking vessels. Utilization was unchanged at 17% on a total fleet basis including cold-stacked vessels. Average rates per day worked decreased by 20% from $21,341 to $17,109. As of June 30, 2016, the Company had 25 of 33 owned and leased-in vessels cold-stacked in the U.S. Gulf of Mexico compared with 21 of 32 as of March 31, 2016. Of the 25 vessels cold-stacked, 13 were liftboats.
Operating results from international regions, excluding losses on asset dispositions and impairments, were $1.5 million higher compared with the preceding quarter primarily due to a reduction in drydocking expenses. Utilization declined from 71% to 68% on a total fleet basis excluding wind farm utility vessels but including cold-stacked vessels. Average rates per day worked increased by 3% from $9,109 to $9,413. As of June 30, 2016, the Company had four of 100 owned and leased-in vessels cold-stacked in international regions compared with five of 101 vessels as of March 31, 2016.
Derivative gains of $2.9 million in the first quarter were primarily due to unrealized gains on equity options.
Foreign currency losses of $0.8 million in the second quarter and $1.6 million in the preceding quarter were primarily due to the weakening of the pound sterling in relation to the euro underlying certain of the Company''s debt balances.
Equity in losses of 50% or less owned companies of $3.3 million in the second quarter were primarily due to losses of $3.0 million for the Company''s proportionate share of impairment charges associated with its joint ventured fleet.
- Operating loss was $1.1 million compared with $0.9 million in the preceding quarter. OIBDA was $5.2 million on operating revenues of $33.8 million compared with $6.2 million on operating revenues of $39.6 million in the preceding quarter.
During the second quarter, the Company sold the owned equipment and the rights to leased-in equipment that comprised its liquid unit tow operation for net proceeds of $90.0 million and gains of $2.0 million, all of which were recognized currently. In addition the Company recognized previously deferred gains of $0.6 million.
Operating results, excluding gains on asset dispositions, were $2.1 million lower compared with the preceding quarter primarily due to lower seasonal activity levels for the dry-cargo barge pools and terminal operations. Lower export demand has reduced operating results in both the second and preceding quarter.
Foreign currency gains of $1.0 million in the second quarter and $1.4 million in the preceding quarter were primarily due to the strengthening of the Colombian peso in relation to the U.S. dollar underlying certain of the Company''s intercompany lease obligations.
During the second quarter, the Company recognized $1.8 million of equity losses from its 50% owned company operating on the Parana-Paraguay River Waterway as a consequence of continued weakness in the iron ore and grain markets. In addition, the Company recognized interest income (not a component of segment profit) of $0.8 million and deferred gains of $0.5 million on notes due from and equipment previously sold to this 50% or less owned company.
- Operating income was $10.6 million compared with $16.3 million in the preceding quarter. OIBDA was $18.0 million (of which $5.9 million was attributable to noncontrolling interests) on operating revenues of $55.6 million compared with $22.9 million (of which $8.0 million was attributable to noncontrolling interests) on operating revenues of $57.1 million in the preceding quarter.
Operating results were $5.7 million lower in the second quarter. Operating results were $2.8 million lower as a consequence of 45 out-of-service days for one U.S.-flag product tanker undergoing cargo tank modifications for chemical carriage, $1.6 million lower primarily due to a reduction in average yields for harbor towing resulting from changes in the mix of vessels calling at ports served, and $1.1 million lower as a result of a rate modification upon the Company''s election to keep a U.S.-flag product tanker on charter with an existing client.
- Segment profit was $3.3 million (of which $1.0 million was attributable to noncontrolling interests) on operating revenues of $40.6 million compared with $1.4 million (of which $0.4 million was attributable to noncontrolling interests) on operating revenues of $49.6 million in the preceding quarter. Segment profit was $1.9 million higher primarily due to an improvement in industry-wide fuel ethanol margins.
- During the second quarter, the Company purchased $8.7 million in principal amount of its 7.375% Senior Notes for $8.4 million resulting in gains on debt extinguishment of $0.3 million and purchased $55.8 million in principal amount of its 2.5% Convertible Senior Notes for $54.9 million resulting in gains on debt extinguishment of $1.3 million.
Unrealized marketable security losses on the Company''s investment in 9,177,135 shares of Dorian, a publicly traded company listed on the New York Stock Exchange under the symbol "LPG," were $21.6 million in the second quarter and $21.7 million in the preceding quarter. Dorian''s closing share price was $11.77, $9.40, $7.05 and $5.83 as of December, 31, 2015, March 31, 2016, June 30, 2016 and August 1, 2016, respectively. The Company''s cost basis in Dorian is $13.66 per share.
During the second quarter, other losses include a $6.7 million reserve for one of the Company''s notes receivable from third parties following a decline in the underlying collateral value.
- The Company''s capital commitments as of June 30, 2016 by year of expected payment were as follows (in thousands):
Offshore Marine Services'' capital commitments included nine fast support vessels, four supply vessels and one wind farm utility vessel. These commitments included $14.2 million for one supply vessel that may be assumed by a third party at their option. Shipping Services'' capital commitments included two U.S.-flag product tankers, one U.S.-flag chemical and petroleum articulated tug barge, two U.S.-flag harbor tugs and other equipment and upgrades. Inland River Services'' capital commitments included 50 dry-cargo barges, three inland river towboats and other equipment and improvements.
As of June 30, 2016, the Company''s balances of cash, cash equivalents, restricted cash, marketable securities and construction reserve funds totaled $809.2 million and its total outstanding debt was $1,039.0 million. In addition, the Company had $90.8 million of borrowing capacity under its subsidiary credit facilities. Subsequent to June 30, 2016, the Company''s subsidiaries borrowed $27.9 million under these credit facilities to fund their capital commitments.
SEACOR and its subsidiaries are in the business of owning, operating, investing in and marketing equipment, primarily in the offshore oil and gas, shipping and logistics industries. SEACOR offers customers a diversified suite of services and equipment, including offshore marine, inland river storage and handling, distribution of petroleum, chemical and agricultural commodities, and shipping. SEACOR is dedicated to building innovative, modern, "next generation," efficient marine equipment while providing highly responsive service with the highest safety standards and dedicated professional employees. SEACOR is publicly traded on the New York Stock Exchange (NYSE) under the symbol CKH.
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. 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, including decreased demand and loss of revenues as a result of a decline in the price of oil and resulting decrease in capital spending by oil and gas companies, as well as an oversupply of newly built offshore support vessels, additional safety and certification requirements for drilling activities in the U.S. Gulf of Mexico and delayed approval of applications for such activities, the possibility of U.S. government implemented moratoriums directing operators to cease certain drilling activities in the U.S. Gulf of Mexico and any extension of such moratoriums (the "Moratoriums"), weakening demand for the Company''s services as a result of unplanned customer suspensions, cancellations, rate reductions or non-renewals of vessel charters or failures to finalize commitments to charter vessels in response to a decline in the price of oil, an oversupply of newly built offshore support vessels and Moratoriums, increased government legislation and regulation of the Company''s businesses could increase cost of operations, increased competition if the Jones Act is repealed, liability, legal fees and costs in connection with the provision of emergency response services, including the Company''s involvement in response to the oil spill as a result of the sinking of the Deepwater Horizon in April 2010, decreased demand for the Company''s services as a result of declines in the global economy, declines in valuations in the global financial markets and a lack of liquidity in the credit sectors, including, interest rate fluctuations, availability of credit, inflation rates, change in laws, trade barriers, commodity prices and currency exchange fluctuations, the cyclical nature of the oil and gas industry, activity in foreign countries and changes in foreign political, military and economic conditions, including as a result of the recent vote in the U.K. to leave the European Union, changes in foreign and domestic oil and gas exploration and production activity, safety record requirements related to Offshore Marine Services and Shipping Services, decreased demand for Shipping Services due to construction of additional refined petroleum product, natural gas or crude oil pipelines or due to decreased demand for refined petroleum products, crude oil or chemical products or a change in existing methods of delivery, compliance with U.S. and foreign government laws and regulations, including environmental laws and regulations and economic sanctions, the dependence of Offshore Marine Services, Inland River Services, Shipping Services and Illinois Corn Processing on several customers, consolidation of the Company''s customer base, the ongoing need to replace aging vessels, industry fleet capacity, restrictions imposed by the Shipping Acts on the amount of foreign ownership of the Company''s Common Stock, operational risks of Offshore Marine Services, Inland River Services and Shipping Services, effects of adverse weather conditions and seasonality, the level of grain export volume, the effect of fuel prices on barge towing costs, variability in freight rates for inland river barges, the effect of international economic and political factors on Inland River Services'' operations, the effect of the spread between the input costs of corn and natural gas compared with the price of alcohol and distillers grains on Illinois Corn Processing''s operations, adequacy of insurance coverage, the potential for a material weakness in the Company''s internal controls over financial reporting and the Company''s ability to remediate such potential material weakness, the attraction and retention of qualified personnel by the Company, and various other matters and factors, many of which are beyond the Company''s control as well as those discussed in Item 1A (Risk Factors) of the Company''s Annual report on Form 10-K and other reports filed by the Company with the SEC. It should be understood that it is not possible to predict or identify all such factors. Consequently, the preceding should not be considered to be a complete discussion of all potential risks or uncertainties. 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.
For additional information, contact
Molly Hottinger
(954) 627-5278
or visit SEACOR''s website at
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Datum: 01.08.2016 - 14:37 Uhr
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