Houston-based Hercules Offshore Inc. reported Wednesday net income from continuing operations was $16.6 million on revenue of $211.5 million for the second quarter of 2013. That compared with a second-quarter 2012 net loss of $52.5 million on revenue of $154.5 million.
Hercules is confident that it is correctly positioning itself to focus on their offshore drilling activities.
“Over the past few months, we have taken significant steps to transform the Company to a more focused provider of offshore drilling and international liftboat services, culminating in our acquisition of Discovery Offshore. This acquisition represents a major step forward in our fleet renewal efforts, and adds two world-class jackup rigs with market leading capabilities,” said John T. Rynd, chief executive officer and president of Hercules Offshore, in a statement.
Analysts noted the offshore incident was a focus of attention, but that it should not be the sole focus.
“CEO John Rynd highlighted the company’s consolidation of Discovery Offshore and recent divestitures of non-core businesses and also noted that while ‘the Hercules 265 accident will create some challenges, it should not detract from the positive developments’ the company has undertaken in recent months,” an analyst at Barclays said in a July 31 report.
Hercules’ second-quarter 2013 results include a non-cash capital gain on an investment in Discovery Offshore S.A.
Second-quarter 2012 pre-tax items included a non-cash charge of $47.5 million to reflect the impairment of the Hercules 185 and related deferred costs; a $6.4 million expense related to the April 2012 debt refinancing; and a non-cash charge of $1.4 million and 1.3 million related to the termination of Hercules’ prior term loan facility and the early retirement of a portion of their 3.375 percent Convertible Senior Notes, respectively, Hercules said in a press release.
On an after-tax basis, there was a gain in the second quarter of 2013 of approximately $14.9 million, or about 9 cents per diluted share, compared with approximately $36.8 million, or 23 cents per diluted share, in the second-quarter 2012 items.
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