Deep Sea Supply Posts Increased Revenues for Third Quarter '09
Revenues increased to US $137.3 million or an increase of 2.5% compared to the same period last year. EBITDA was a strong 60.9% of total revenues and net profit was US $42.0 million compared to US $44.2 million in the same period last year. Earnings per share as per 30.09.2009 were US $0.33 compared to US $0.35 in the same period last year.
During the third quarter of 2009, Deep Sea Supply's fleet of 21 offshore supply vessels generated revenues of US $45.8 million or a reduction of 5.5% compared to 3Q 2008 (US $48.4 million). EBITDA in 3Q 2009 was US $27.3 million compared to US $32.2 million in 3Q 2008. The pre-tax profit for 3Q 2009 was US $12.8 million compared to US $12.0 million in 3Q 2008. Earnings per share in 3Q 2009 were US $0.10 compared to US $0.09 in 3Q 2008.
The AHTS vessel "Sea Eagle 1" was acquired in 3Q 2009 at attractive terms and the vessel was acquired using the company's cash reserves.
Deep Sea Supply's entire shareholding in CH Offshore Ltd., Singapore was sold during the third quarter at a profit of US $2.9 million and YTD profits of US $8.5 million.
In October 2009, Deep Sea Supply established a company in Rio, Brazil and placed an order for one large PSV at STX Brazil Offshore S.A. The vessel is expected to be delivered in 1Q 2012. Brazil is a big market for Offshore Supply Vessels and forecasted to grow considerably in the years to come.
The AHTS vessel "Sea Weasel" was delivered from ABG Shipyard on October 29th and financed in accordance with the current loan agreements with the banks.
Deep Sea Supply has committed financing in place for its fleet including its newbuilding program consisting of 6 AHTS to be delivered in 2010 from ABG Shipyard. The newbuilding in Brazil will be financed through a local financing scheme.
The Board suggests no dividend distributions in 3Q 2009 because the current market situation is uncertain. It is the Company's intention to revert to its former dividend strategy as and when the market improves and show more visibility.
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