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    Hornbeck Offshore announces second quarter 2007 results

    News // August 6, 2007

    Hornbeck Offshore Services in the U S has announced results for the second quarter ended June 30th, 2007.

    Among the highlights for the second quarter and the company's future outlook are:

     second quarter 2007 diluted EPS was 16 per cent higher than the second quarter 2006

     second quarter 2007 OSV effective day rates increased 18 per cent over the first quarter of 2007

     second quarter 2007 OSV operating margin was 56 per cent, up from 45 per cent in the first quarter of 2007

     Fleetwide average OSV day rates are currently above US$22,000

    Second quarter 2007 revenues were US$75.1 million, up 6.2 per cent from US$70.7 million for the second quarter of 2006.

    Operating income was US$33.9 million, or 45.1 per cent of revenues, for the second quarter of 2007 compared to US$32.7 million, or 46.3 per cent of revenues, for the prior-year quarter.

    EBITDA for the second quarter of 2007 was US$41.8 million compared to the company's second quarter 2007 guidance range of US$30.0 million to US$35.0 million.

    Net income for the second quarter of 2007 was US$22.6 million, or US$0.85 per diluted share, compared to US$20.3 million, or US$0.73 per diluted share in the year-ago quarter. Included in net income for the second quarter of 2007 was approximately US$5.8 million, or US$0.22 per diluted share, of interest income, up from US$3.6 million, or US$0.13 per diluted share, in the second quarter of 2006.

    This increase in interest income was primarily driven by a higher cash position resulting from cash provided by operating activities and net proceeds raised during the company's November 2006 convertible notes offering, and to a lesser extent, a higher average interest rate earned during the second quarter of 2007.

    Also included in second quarter 2007 EBITDA and net income was a US$1.9 million (US$1.2 million after-tax, or US$0.05 per diluted share) gain on the sale of HOS Hotshot, the company's only fast supply vessel.

    In the second quarter of 2006, EBITDA and net income included a gain on the sale of assets of US$0.3 million (US$0.2 million after-tax, or US$0.01 per diluted share) resulting from the disposition of the Energy 2202, a single-hulled tank barge.

    Revenues from the OSV segment were US$48.6 million for the second quarter of 2007, an increase of 10.0 per cent over US$44.2 million for the same period in 2006. Fleetwide average OSV dayrates for the second quarter of 2007 of US$21,358 improved 10.5 per cent, or US$2,037 per day, from US$19,321 for the same period in 2006.

    The OSV fleet remained at full practical utilization of 96.7 per cent for the second quarter of 2007 comparable to the year-ago quarter. The company's effective, or utilization-adjusted, day rate for the OSV segment was US$20,653, which was US$1,989, or 10.7 per cent, higher than the second quarter of 2006.

    OSV operating income of US$27.0 million was US$4.3 million, or 18.9 per cent higher than the prior-year quarter despite a 15.9 per cent year-over-year increase in operating costs. This cost increase was primarily related to previously reported market-driven personnel cost increases that included higher crew wages and FAS 123R expense associated with restricted stock units granted to mariners in June 2006 and February 2007, increased labour costs at the company's shore-based port facility and higher contract service costs associated with foreign operations.

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