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    GulfMark reports best quarter for more than four years

    Company News // October 25, 2013

    GulfMark Offshore has announced results for the three- and nine-month periods ended September 30, 2013, and says the last quarter was its best for more than four years.

    For the third quarter ended September 30, 2013, revenue was US$121.8 million and net income was US$32.3 million, or US$1.23 per diluted share. The quarterly results include a gain of US$6.0 million (US$0.23 per diluted share) related to the sale of three vessels, and earnings before this special item was US$1.00 per diluted share.

    Quintin Kneen, President and CEO of the company, said: "We are pleased to report our best quarter in over four years. The steady strengthening of utilization has allowed the industry to continue to increase the average day rate, but we still need additional improvements in the rate to justify the through-the-cycle return on our investment in these high-end vessels.

    "During the third quarter, we took delivery of the first four vessels in our 11-vessel new build programme. Another vessel was delivered just last week in Italy and is en route to the UK. All of these vessels will be in the North Sea market; two of which are on term contracts, while three will be operating in the spot market.

    "We anticipate that all of these vessels will operate at rates above our through-cycle target return after the normal multi-week introductory period. We continue to progress with our second vessel-enhancement programme in the Gulf of Mexico, the 260-class stretch programme, with the first completed vessel going on hire upon its completion earlier this month, and another forecasted to be completed in the middle of the fourth quarter.

    "Our next vessel deliveries will be in the first quarter of 2014, when we will take delivery of the first US-built PSV in our new build programme, the second Arctic class vessel in Norway, and the second of our Italian-built PSVs for the UK market. This reflects a delay in the delivery of some of our vessels, but overall we are pleased with the quality and progress of the new build programme.

    "We sold three of our older PSVs during the third quarter. We will lose revenue and operating income from the sale of these vessels in the near-term, however, we believe the value we received is adequate compensation and allows us to continue our ongoing strategy to maintain a young, high-margin, technologically advanced fleet. We will continue to look for acceptable sales opportunities to divest our older and non-core vessels.

    "Although we anticipate the typical seasonal slowdown in the North Sea over the next two quarters, we remain optimistic about 2014. We are tightening our previous revenue guidance within the range provided on our last earnings call, and we now anticipate full-year 2013 revenue to be between US$450 and US$455 million, and we anticipate that revenue for the fourth quarter will be between $120 and $125 million."


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