GulfMark Offshore reports third quarter resultsNews // November 22, 2002
Operating income for the third quarter of 2002 was $9.6 million compared to $12.4 million in the same quarter one year ago and slightly below the $10.2 million for the second quarter of 2002.
Reflecting on the results for the quarter, Bruce Streeter, president and COO of the Company, said: "Market weakness, despite a strong oil price and predicted increased exploration and production spending, continued throughout much of the world. Our quarterly earnings were limited by weak spot market dynamics in the North Sea and static pricing in Southeast Asia. Late in the quarter, as the result of contract awards and market opportunities, we removed two vessels from service in order to mobilize them to other markets, thereby reducing the available days. It was the combination of these factors that led to our quarterly results falling below the previous quarter."
The comparison of revenues in the third quarter of 2002 to the same period in 2001 primarily reflects an increase of five vessels in the North Sea fleet as overall revenue increased $3.4 million.
The additional vessels contributed $3.9 million while slightly higher average day rates in all regions added $0.2 million. Decreased utilization in the all regions, except Brazil, offset $0.6 million of the increase, with the balance attributable to thepreviously announced sale of the Searunner in Southeast Asia.
When compared to the second quarter of 2002, the third quarter revenues increased $1.6 million. An increase in the average day rate in the North Sea contributed $1.4 million while an increase in the number of calendar days in the quarter added $0.4 million. Lower utilization in Southeast Asia, in addition to the vessel sale, partially offset $ 0.2 million of the increase.
The Highland Bugler joined the Company's North Sea fleet in mid-October. The six remaining vessels in the Company's newbuild program remain on time and within budget with one vessel to be delivered in the fourth quarter of 2002, four vessels, one in eachquarter, in 2003 and one in mid-2004.
Capital expenditures in the third quarter of 2002 were $5.5 million, primarily consisting of $1.2 million related to the Brazilian newbuild, $3.3 million associated with the other newbuild vessels and $1.0 million related to dry dockings.
At September 30, 2002, GulfMark had working capital of $50.1 million, including $28.4 million in cash. There were no borrowings under the company's $100 million credit facility.