Hornbeck financial situation little changedCompany News // November 2, 2017
Hornbeck Offshore has released results for the third quarter of 2017. The company's difficult long-term financial situation has changed little since the end of the second quarter.
As of 30 September 2017, the company's total liquidity (cash and credit availability) was US$316.5 million, consisting of US$112.8 million of cash and US$203.7 million of availability under the First-Lien Credit Facility, which represents a decrease of US$12.0 million, or 4%, from the end of the second quarter.
The company projects that, even with the currently depressed operating levels, cash generated from operations together with cash on hand and availability under the First-Lien Credit Facility should be sufficient to fund its operations and commitments through at least 31 December 2019.
However, absent a significant recovery of market conditions such that cash flow from operations were to increase materially from projected levels and/or further management of its funded debt obligations, the company does not currently expect to have sufficient liquidity to repay the full amount of its 5.875% Senior Notes and 5.000% Senior Notes as they mature in fiscal years 2020 and 2021, respectively.
The company said it "remains fully cognizant of the challenges currently facing the offshore oil and gas industry and continues to review its capital structure and assess its strategic options."