Tankers boost Seabulk results
"We had a good quarter with improved results in all three lines of business," commented Seabulk International Chairman and CEO Gerhard E. Kurz, commenting on third quarter results released yesterday. "Leading the way was Seabulk Tankers, which is benefiting from a high rate environment and had its best quarter ever. Seabulk Offshore, which services offshore oil platforms and terminals, had a small profit in its domestic Gulf of Mexico operations for the first time in nearly three years --an encouraging development. Seabulk Offshore's international operations continued their year-to-date strong showing. Seabulk Towing, our third business, registered solid gains in both revenue and operating income as traffic increased in several ports. We expect these positive trends to continue in the fourth quarter as energy consumption grows and the demand for our vessels and services rises."
Fort Lauderdale, Fla., based Seabulk International, Inc. (Nasdaq: SBLK) yesterday reported net income of $6.8 million or $0.29 per fully diluted share on revenue of $89.4 million for the quarter ended September 30, 2004. In the year-earlier period, the company had a net loss of $1.9 million or $0.08 per fully diluted share on revenue of $79.7 million. Included in the year-ago loss were charges of approximately $1.7 million or $0.07 per diluted share related to the early extinguishment of debt. In the immediately preceding quarter, ended June 30, 2004, the company had net income of $2.7 million or $0.12 per fully diluted share on revenue of $87.2 million. Operating income in the current period was $16.8 million compared to $9.5 million a year ago and $12.5 million in the immediately preceding quarter.
For the nine months ended September 30, 2004,Seabulk had net income of $15.2 million or $0.64 per diluted share on revenue of $259.1 million. In the year-earlier period, the company had net income of $2.4 million or $0.10 per diluted share on revenue of $236.8 million.
Revenue from Seabulk Offshore, the Company's largest business with a fleet of 111 offshore energy support vessels, totaled $40.7 million in the quarter or 45 percent of total company revenue, down from $42.0 million and 53 percent of total company revenue in the third quarter of 2003. Operating income, however, improved to $4.9 million from $3.1 million a year ago as thecCompany slashed expenses and overhead in its Gulf of Mexico operations. Utilization of the Company's vessels in the Gulf of Mexico improved over the immediately preceding quarter and was essentially unchanged across the international fleet.
Day rates in the quarter for both the domestic and international fleets were essentially unchanged from the immediately preceding quarter. During the quarter Seabulk redeployed two of its supply boats to Mexico and sold two small Gulf of Mexico-based crewboats. In October the company took delivery of the first of two Brazilian-based Platform Supply Vessels, the Seabulk Brasil, which entered service at an attractive rate.
Seabulk last week signed contracts for the construction of four new 7,000-horsepower Anchor Handling Tug Supply vessels, part of its ongoing fleet renewal program, with options for four additional vessels. The vessels are scheduled for delivery in 2006 and will work in the international arena.
Revenue from Seabulk Tankers, the company's fleet of 10 Jones Act and two foreign-flag product carriers, rose to $38.1 million or 43 percent of total company revenue from $28.0 million or 35 percent of total company revenue in the year-ago quarter, when the company operated 10 tankers and freight rates were lower. Operating income of $12.3 million was up 61 percent from the $7.6 million earned in the third quarter of 2003.
There were two drydockings in the quarter (the Seabulk Challenge and Brenton Reef) and two in the year-earlier period. There are no drydockings scheduled for the fourth quarter of 2004. In October the company renewed for two years the time charter on one of its Jones Act vessels at a higher rate.
Seabulk Towing, which operates a fleet of 26 tugs in seven southeastern ports and the offshore Gulf of Mexico, continued its strong year-to-date performance with revenue of $10.7 million or 12 percent of total company revenue, up from $9.8 million in the third quarter of 2003. The revenue gain was driven by a number of factors, including increased traffic in certain of the Company's ports. Operating income improved to $2.6 million from $2.1 million in the third quarter of 2003.
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