Hornbeck revenues soar
Hornbeck Offshore Services, Inc. today reported revenues for the quarter ended June 30, 2002 of $21.3 million, up 39.2 percent compared to $15.3 million for the same quarter in 2001. Operating income was $8.2 million or 38.6 percent of revenues for the second quarter of 2002, compared to $6.4 million or 42.1 percent of revenues for the same quarter in 2001. But second quarter 2002 net income was $2.8 million compared $3.1 million for the second quarter 2001. Hornbeck Offshore says the significant increase in revenue in the quarter over the prior year was due to the increase in size of the company's fleet since April 2001. Net income declined $300,000 because of higher depreciation expense related to the new vessels and greater interest expense associated with the company's high yield debt offering in July 2001.
For the first half of 2002, revenues increased 71.5 percent to $44.1 million resulting in operating income of $17.6 million or 39.8 percent of revenues, compared to first-half 2001 revenues of $25.7 million that resulted in operating income of $10.4 million or 40.6 percent of revenues. Net income totaled $6.3 million for the first six months of 2002, compared to net income of $4.9 million for the first six months of 2001.
Discussing the results, the company notes that it took delivery of four newly constructed, deepwater OSV vessels on April 27, 2001, November 6, 2001, February 20, 2002 and June 13, 2002, respectively; and acquired nine ocean-going tugs and nine ocean-going tank barges from the Spentonbush/Red Star Group, affiliates of Amerada Hess Corporation, on May 31, 2001. The $6.0 million net increase in second quarter 2002 revenue over the prior year quarter was comprised of $7.4 million of incremental revenue from these newly acquired or constructed vessels, offset by a $1.4 million decrease in "same vessel" revenue. The decrease in "same vessel" revenue was primarily attributable to an 11 percent decline in tank barge utilization from the year-ago quarter.
VP and CFO Jim Harp, commented that "despite continued weakness in the Northeast tank barge market and several of our deepwater OSVs working in a soft spot market, we were pleased to deliver another quarter of financial results well within analysts' expectations, resulting in trailing twelve-month EBITDA of $46.4 million for the period ended June 30, 2002."
Hornbeck Offshore completed construction of the HOS Brimstone during the second quarter of 2002. This new 265-ft. class vessel was delivered on June 13, 2002 and immediately commenced service under a previously reported fixed time charter with an existing customer, a large international exploration and production company.
The HOS Stormridge, an additional 265-ft. class offshore supply vessel to be constructed under the company's second newbuild program, is currently on sea trials and is expected to be delivered within the next few days. On delivery, it will immediately commence service under a fixed time charter with a major oil company. The contract will have an initial three-month term, with renewal options.
On July 22, 2002, the company was awarded a contract with a major oil company operating in Trinidad for two of its offshore supply vessels, the 200-ft. class HOS Thunderfoot and 240-ft. class HOS Cornerstone. The fixed time charters will each have an initial six-month term, with renewal options, and are expected to commence in mid-August upon the vessels' mobilization to Trinidad.
President and CEO Todd Hornbeck, stated, "We are pleased to announce the international expansion of our OSV operation into Trinidad. Given the geographic proximity of Trinidad to our current OSV operations in the Gulf of Mexico and tank barge operations in Puerto Rico, we believe this is a logical next step for us to penetrate new oil and gas markets within our hemisphere."