Seacor Marine Holdings Inc provides world-wide marine and support transportation services to offshore energy facilities globally. The company operates and manages a diverse fleet of offshore support vessels that deliver cargo and personnel to offshore installations including wind farms; handle anchors and mooring equipment for offshore rigs and platforms. Its geographical segment includes the United States (Gulf of Mexico); Africa and Europe; Middle East and Asia and Latin America.
Performance Overview
For the second quarter of 2024, Seacor Marine Holdings Inc (SMHI, Financial) reported consolidated operating revenues of $69.9 million, surpassing the analyst estimate of $68.21 million. However, the company posted a net loss of $12.5 million, translating to a loss per share of $0.45, which was below the analyst estimate of -$0.16 per share.
Compared to the same quarter last year, revenues increased by 2.3% from $68.3 million, while the net loss widened from $4.6 million ($0.17 loss per share). Sequentially, the company showed improvement in revenues, up 11.3% from $62.8 million in Q1 2024, and a reduced net loss from $23.1 million ($0.84 loss per share).
Key Metrics and Financial Achievements
Seacor Marine Holdings Inc (SMHI, Financial) reported an average day rate of $19,141, a significant 25.5% increase from the second quarter of 2023. However, fleet utilization dropped to 69% from 78% in the same period last year, though it improved from 62% in the first quarter of 2024. The direct vessel profit (DVP) margin stood at 29.1%, down from 44.8% in Q2 2023 but up from 23.4% in Q1 2024.
Chief Executive Officer John Gellert commented:
“During the second quarter, we continued to reprice our fleet at significantly improved day rates while working through a period of lower utilization. Our lower utilization was primarily driven by planned drydockings and major repairs as part of a heavier 2024 maintenance schedule, some of which have taken longer than expected as shipyards and vendors continue to address various capacity challenges. Utilization was also affected by near-term softer demand in the U.S. and longer re-marketing time between jobs internationally.”
Income Statement Highlights
| Metric | Q2 2024 | Q2 2023 | Q1 2024 |
|---|---|---|---|
| Operating Revenues | $69.9 million | $68.3 million | $62.8 million |
| Operating (Loss) Income | $(3.9) million | $2.9 million | $(10.6) million |
| Net Loss | $(12.5) million | $(4.6) million | $(23.1) million |
| Loss Per Share | $(0.45) | $(0.17) | $(0.84) |
Balance Sheet and Cash Flow
Seacor Marine Holdings Inc (SMHI, Financial) reported total operating expenses of $73.8 million for Q2 2024, up from $65.7 million in Q2 2023. The increase in expenses was driven by higher costs associated with drydocking and major repairs, which amounted to $8.5 million compared to $3.1 million in the same period last year.
The company’s interest expense also rose to $10.2 million from $8.7 million in Q2 2023, reflecting higher debt levels. Despite these challenges, Seacor Marine Holdings Inc (SMHI, Financial) maintained a strong liquidity position with significant contracted revenue backlog of $403.9 million, including options.
Analysis and Outlook
Seacor Marine Holdings Inc (SMHI, Financial) continues to navigate a challenging market environment with strategic investments in fleet maintenance and upgrades. The company’s focus on improving day rates and maintaining a robust revenue backlog positions it well for future growth. However, the ongoing capacity challenges and lower utilization rates remain areas of concern.
Looking ahead, the company’s efforts to complete its maintenance schedule and invest in hybrid battery systems for its platform supply vessels are expected to enhance operational efficiency and support improved utilization rates. As the market conditions stabilize, Seacor Marine Holdings Inc (SMHI, Financial) is poised to benefit from its strategic initiatives and improved market fundamentals.
Explore the complete 8-K earnings release (here) from Seacor Marine Holdings Inc for further details.
