GulfMark Offshore Q4 Revenue up 20.7%, Surpassing Records
GulfMark Offshore reported Q4 revenue of $91.5 million was 20.7% higher than previous record of $75.8 million in the 3rd quarter 2006.
Additionally, 2007 revenue exceeded $306 million, which is 22% above the $250.9 million record in 2006 and 50% higher than 2005.
The operating income of $39.2 million for 4th quarter 2007 exceeded the previous 4th quarter record of $34.0 million set in 2006. The operating income of $134.3 million and Cash Flow From Operations of $128.6 million for 2007 were 25% and 22.6%, respectively, above the previous records in established in 2006.
The2007 Net Income of $99.0 million, after a 4th Quarter charge of $27.6 million related to foreign tax law changes, was over 10% higher than the previous record of $89.7 million in 2006.
Commenting on the quarter's performance, Bruce Streeter, President and CEO, said, "We are extremely pleased to report the record setting operating performance for the quarter and year. The results both exceeded our internal goals and the investment community's expectations by a wide margin. The quarter was the benefactor of significant improvements in day rates in the North Sea and Southeast Asia regions, partially offset by the completion of six dry docks during the period which reduced overall utilization by 1.9%. As spot market demand spiked in the North Sea during the quarter, our strategy of balancing term contracts with short-term availability allowed us to capture some of the highest day rates of the year on several vessels. In our Southeast Asia market, we saw an improvement in day rates of nearly sixty percent since last year as demand continues to build for our new generation vessels.''
Income of $0.55 per diluted share for the 4th quarter of 2007 reflected the previously announced retroactive tax law change enacted in Norway, in addition to the new revenue tax instituted in Mexico, which resulted in a combined charge of $27.6 million, or $1.19 per diluted share for the quarter. Also included in the quarter's results was a gain on the sale of a vessel which resulted in a $1.8 million gain, or $0.08 per diluted share. Mr. Streeter emphasized that the ``normalized'' net income per diluted share for the 4th quarter 2007 was $1.66 per diluted share and approximately $5.00 per diluted share for the total year 2007, excluding both the charge for the foreign tax law changes and the income from the vessel sales.
He continued, "As we begin 2008, market conditions remain favorable for our continued success. Global energy demand continues to drive worldwide E&P expenditures to double-digit annual growth, with leading industry research forecasting a 16% increase in international spending in 2008, the ninth consecutive year of growth. New areas for exploration continue to focus on deeper waters in harsh and remote areas requiring support of more capable and in many cases newer vessels. To that end, our new build program is geared to deliver vessels that will meet or exceed our customer's needs in the future. One of these new builds was delivered early this year in Southeast Asia, the AHTS Sea Apache, and began a long-term contract immediately thereafter. We currently have eleven new vessels under construction, with four more slated for delivery this year.
"We continually monitor market conditions to determine the optimal mix of term versus spot contract coverage. Today, our forward contract cover, a measure of the days vessels are under contract or option, stands at over 82% for 2008, the highest coverage at this point in a given year since we began tracking the statistic. This level of cover represents well over $260 million in revenues and provides a stable earnings and cash flow base while providing the upside potential from opportunities in our primary market areas.
Overall, we believe we have advantageously positioned ourselves to maximize financial results through our fleet renewal and modernization programs as well as our focus on international markets and expanding specialty applications. We are confident that, through execution of our strategic plan, we will continue to increase shareholder value over the long-term."