GulfMark Offshore Reports Record Second Quarter

GulfMark Offshore, Inc. announced earnings per share of $2.00 for the second quarter and $3.40 for the first half of 2008. Highlights include:

  • Highest quarterly and first half earnings per share in company history
  • Acquired Rigdon Marine on July 1, immediately adding 19 deepwater Gulf of Mexico vessels
  • Southeast Asia sequential quarterly revenue growth of 24% and 139% over prior year
  • Americas revenue growth of 25% in 2nd quarter vs. 1st quarter and 40% year over year
  • Proactive drydocking increases revenue and profit potential for second half of 2008

Revenues for the quarter of $81.9 million increased $7.6 million over the same period in the prior year principally due to increased day rates in our Southeast Asia and Americas regions. Net income for the second quarter was $46.8 million, or $2.00 per diluted share, including a gain of $16.4 million from the sale of two vessels, representing a 52% increase over the prior year level.

Revenues for the first six months of 2008 increased 18.2% over the same period in the prior year to $165.2 million resulting from higher revenues from all regions. Net income was $79.0 million, or $3.40 per diluted share, including the gains on the vessel sales, which represents a 43.5% increase in net income compared to the same period in the previous year.

Compared to the first quarter this year revenues decreased $1.4 million, or 1.7%, as a result of the strategic positioning of several vessels to earn higher revenues in future quarters, increased drydock days and lower revenue in the North Sea, partially offset by improved revenue from Southeast Asia and the Americas. Net income increased $14.5 million compared to the first quarter of 2008 due primarily to the gain on vessel sales.
"Although concluded on the first day of the third quarter, the major accomplishment of the second quarter was obviously our coming to an agreement and subsequently closing the Rigdon Marine acquisition," said President and CEO Bruce Streeter. "As we've previously noted, we believe this immediate entry into a leading position in the U.S. Gulf comes at a time when the current and forward looking fundamentals of that market are very favorable. Day rates in this region are moving up and a recent report suggested that supply vessel utilization hit 100% in the month of June.

"[There has been] tremendous growth in the Southeast Asia region. Since the beginning of 2007 we have sold six older vessels operating in this region and have taken delivery of five new builds, the most recent being the Sea Choctaw in mid-July this year which has already started work on a one-year plus options charter in Vietnam. The combination of our vessel renewal initiative and the strengthening of day rates in the region have more than doubled this region's revenue and operating profits year over year. During the second quarter, we substituted the Sea Kiowa for the Sea Apache and have completed the modifications required for its initial two-year charter with Petrobras. The Sea Kiowa is currently underway to Brazil and is due to go on-hire late in the third quarter."