MAY 3, 2018 — Covington, LA, based Hornbeck Offshore Services, Inc. (NYSE:HOS) yesterday reported its results for the first quarter ended March 31, 2018. And despite reporting losses, HOS disclosed that it has agreed to acquire four high spec U.S.-flag offshore service vessels (OSVs) from Aries Marine Corporation, Lafayette, LA.
Hornbeck’s net loss for the first quarter of 2018 was $38.7 million compared to a net loss of $27.9 million for the first quarter of 2017; and net income of $93.8 million, for the fourth quarter of 2017, when it got a $125.2 million tax benefit related to U.S. tax reform legislation.
HOS had an average of 44 vessels stacked in the first quarter compared to 45.9 vessels stacked in first quarter 2017 and 43.5 vessels stacked in fourth quarter 2017. Operating loss was $33.9 million for the first quarter of 2018 compared to an operating loss of $26.5 million for the prior-year quarter; and an operating loss of $14.3 million for the fourth quarter of 2017.
HOS reported that, on April 13, 2018, it entered into a definitive vessel purchase agreement with and certain of its affiliates to acquire four high-spec OSVs and related equipment for $36.6 million in cash, plus the cost of fuel and lube inventory. The acquired vessels are 100% U.S.-flagged and are comprised of two 280 class OSVs and two 300 class OSVs, all of which have a DP-2 designation.
The two 280 class OSVs were built in 2014 and 2015, respectively, and have capacities of approximately 3,800 DWT and 13,000 barrels of liquid mud. The two 300 class OSVs were built in 2010 and 2011, respectively, and have capacities of approximately 5,500 DWT and 19,500 barrels of liquid mud.
Hornbeck expects to close the transaction, subject to customary conditions, during the second quarter of 2018. The acquisition will be fully funded with cash on hand.
In accordance with the terms of the company’s First-Lien Credit Facility, the vessels will be pledged as additional collateral against that facility.