November 2, 2001
Hornbeck-Leevac revenues soar
Revenues for the quarter ended September 30, 2001 increased 118.4 percent to $21.4 million, compared to $9.8 million for the same quarter in 2000, Hornbeck-Leevac Marine Services, Inc. announced today. The company also announced a contract for a new 240-ft OSV and delivery of a 265-ft OSV
Operating income for the quarter was $8.8 million or 41.1 percent of revenues, compared to $3.5 million or 35.7 percent of revenues for the same quarter in 2000. Third quarter 2001 income before extraordinary items was $3.5 million compared to net income of $0.9 million for the third quarter 2000.
The third quarter of 2001 included a non-cash extraordinary loss of $1.9 million, net of taxes, resulting from the early extinguishment of debt. This relates to the write-off of deferred financing costs after the company refinanced all its debt through the issuance of $175.0 million of senior unsecured notes in July 2001.
For the first nine months of 2001, revenues increased 80.5 percent to $47.1 million resulting in operating income of $19.2 million or 40.8 percent of revenues, compared to first nine months 2000 revenues of $26.1 million that resulted in operating income of $8.4 million or 32.2 percent of revenues. Income before extraordinary items totaled $8.4 million for the first nine months of 2001 compared to net income of $1.3 million for the first nine months of 2000.
The company acquired nine ocean-going tugs and nine ocean-going tank barges and the related coastwise transportation businesses from the Spentonbush/Red Star Group, affiliates of Amerada Hess Corporation, on May 31, 2001. This acquisition contributed to the Company's revenue growth for all of the third quarter of 2001 and for four months during the nine-month period ended September 30, 2001.
Also contributing to the revenue growth were the results of the HOS Innovator, a 240-foot class deepwater offshore supply vessel, which the company took delivery of on April 27, 2001. This vessel contributed to the Company's revenue growth for all of the third quarter of 2001 and for five months during the nine-month period ended September 30, 2001.
Chairman and CEO Christian Vaccarisaid that performance of the company's Northeast tank barge operations had exceeded expectations. "We believe our diversified marine strategy, focus on the still vibrant deepwater Gulf of Mexico and recently improved capital structure have the company well positioned to weather the uncertainties facing our nation's economy," he said.
Hornbeck Leevac's first 265-ft. class, the BJ Blue Ray, scheduled for delivery in October 2001, is currently on sea trials and expected to be delivered within the next few days.
The vessel will be "substantially on time and on budget taking into account customer requested modifications to the vessel design." Upon delivery, this vessel will be on a five-year contract with BJ Services, with a five-year renewal option.
Hornbeck-Leevac has also signed a definitive agreement with Sonsub Inc. for its next 240-ft. class vessel, to be named the HOS Innovator II. This agreement is on substantially the same terms as the 240-ft. class HOS Innovator, which was delivered to Sonsub in April 2001. These contracts have initial terms of three-years, with a 3-year renewal option. The HOS Innovator II is currently scheduled for delivery in February 2002, due to customer requested design modifications.
President and COO Todd Hornbeck said: "This contract with Sonsub for a second vessel will further solidify our expansion into the production-oriented, deepwater specialty service sector, which should provide us further diversification within our deepwater OSV fleet. Hornbeck Offshore now has four vessels servicing or chartered for future service to the deepwater specialty markets demonstrating our ability to provide advanced technical and operating solutions to our clients."
More orders for Sulzer RT-flex diesels
Wärtsilä Corporation reports orders for more Sulzer RT-flex engines--the world's first low-speed marine engines to have common-rail fuel injection,
As reported here, the first Sulzer RT-flex engine successfully completed its sea trials in September 2001 in the self-unloading bulk carrier "Gypsum Centennial" of Gypsum Transportation Ltd. This Sulzer 6RT-flex 58T-B engine, of 11,275 kW (15,350 bhp) output, was built under license by Hyundai Heavy Industries Co Ltd.
Most recently, Wärtsilä has received an order for two Sulzer RT-flex engines to be installed in two 30,000 tdw multipurpose carriers contracted at Shanghai Shipyard in China by Chinese-Polish Joint Stock Shipping Co (Chipolbrok). Each will be propelled by a seven-cylinder Sulzer RT-flex60C engine with a maximum continuous output of 16,520 kW (22,470 bhp) at 114 rev/min.
For each vessel, Wärtsilä will also supply three Wärtsilä 6L20 auxiliary engines with a combined output of 3060 kW (4160 bhp) at 900 rev/min.
These vessels will be able to carry diverse dry bulk cargoes such as grain, coal, ore, etc., as well as containers (about 2000TEU) and are fitted with 640-tonne heavy-lift cranes. The vessel's principal dimensions are 199.8m long overall, 27.8 m beam, and 10.3m design draft. The service speed will be more than 19 knots. After delivery in 2003, the vessels will operate between Europe and East Asia.
Two Sulzer 7RT-flex60C engines have also been ordered for two 13,200 tdw containerized reefer ships contracted at Estaleiros Navais de Viana do Castelo in Portugal by Agricultural Export Co (Agrexco). These two 16,520 kW (22,470 bhp) engines will be supplied by Wärtsilä's Trieste factory in Italy, with ship deliveries due in 2003.
Finally, another Sulzer 6RT-flex58T-B engine has been ordered from licensee Diesel United Ltd in Aioi, Japan, for a 105,400 tdw Aframax tanker building at Sumitomo Heavy Industries Ltd for the Italian owner Scinicariello Ship Management. Delivery of the ship is due in mid 2003.