SEACOR Marine Announces Third Quarter 2019 Results 

HOUSTON, Nov. 08, 2019 (GLOBE NEWSWIRE) — SEACOR Marine Holdings Inc. (NYSE:SMHI) (the “Company” or “SEACOR Marine”), a leading provider of marine and support transportation services to offshore oil and natural gas and wind farm facilities worldwide, today announced results for its third quarter ended September 30, 2019.As a result of the announcement of the pending sale of its North Sea Standby Safety business on November 1, 2019, the Company has classified its standby safety assets as held for sale as of the end of the third quarter 2019.  The highlights included below represent the results from continuing operations, which exclude the standby safety operations because they are classified as discontinued operations.Third quarter highlights from continuing operations include:Total operating revenues from continuing operation increased 4% to $54.7 million from $52.8 million in the second quarter of 2019, primarily due to lower drydocking days in the U.S. and higher contributions from the Company’s international liftboats. Utilization increased 5% from the second quarter 2019 primarily due to a decrease in the number of available days as a result of asset sales during the last twelve months.  Operating loss decreased to $6.0 million from $18.8 million in the second quarter of 2019.
 
Consolidated direct vessel profit (“DVP”)(1) for the third quarter of 2019 increased by $10.1 million, or 58%, to $27.5 million from $17.4 million in the second quarter of 2019. All regions experienced DVP improvement.
 
Average dayrates, excluding the CTV fleet, increased to $10,946 from $10,387 in the second quarter of 2019. This is the highest average dayrate the Company has experienced since the first quarter of 2016.
 
Wind energy support revenues for the third quarter of 2019 increased by $1.4 million to $11.9 million from $10.5 million in the second quarter of 2019, a 14% increase, and DVP for this activity increased by $2.5 million to $6.9 million from $4.4 million in the second quarter of 2019, a 56% increase.  This growth included both organic improvement in utilization and average dayrates for the CTV fleet and the full quarter contribution of a multi-year contract in Europe for one liftboat.
 
The third quarter results include one-time restructuring charges of $3.3 million arising from the Company’s continuing cost reduction initiatives. During the third quarter of 2019, the Company implemented initiatives providing $4.6 million in annualized recurring administrative and general savings and maintained its target of projected annual savings of at least $8.0 million. The Company anticipates that the initiatives will impact all of its reportable segments and expects the bulk of the initiatives to be completed by the second quarter of 2020.Chief Executive Officer John Gellert commented on SEACOR Marine’s third quarter results:“I am pleased with our performance during the third quarter of 2019, which saw the highest direct vessel profit (“DVP”) and utilization from continuing operations since the fourth quarter of 2014. This improved margin reflects the strategic positioning and high grading of our fleet worldwide. We continued to implement our aggressive cost-cutting initiative and have already achieved more than 50% of our annualized target savings, and expect full implementation by mid 2020.“Consistent with our strategy of reducing costs, we are actively identifying opportunities to optimize our regional footprint and are focusing our resources on core assets, regions and services with the highest earning potential. This past quarter we announced the sale of our North Sea standby safety business, which will occur in the fourth quarter of 2019. In addition to this pending sale, we sold seven vessels during the third quarter, bringing our total vessel sales to 15 for the year. I remain confident that these efforts will put us on the path to achieving profitability independent of a full market recovery in oil and gas services.”For the third quarter of 2019, net loss attributable to SEACOR Marine’s continuing operations was $11.4 million ($0.49 loss per basic and diluted share), and operating loss was $4.4 million.  Net loss attributable to SEACOR Marine’s continuing operations for the third quarter of 2018 was $18.9 million ($.85 loss per basic and diluted share) and operating loss was $13.5 million.___________________
SEACOR Marine provides global marine and support transportation services to offshore oil and natural gas and windfarm facilities worldwide.  SEACOR Marine and its joint ventures operate a diverse fleet of offshore support and specialty vessels that deliver cargo and personnel to offshore installations; handle anchors and mooring equipment required to tether rigs to the seabed; tow rigs and assist in placing them on location and moving them between regions; provide construction, well workover and decommissioning support; and carry and launch equipment used underwater in drilling and well installation, maintenance and repair.  Additionally, SEACOR Marine’s vessels provide accommodations for technicians and specialists, safety support and emergency response services.
Certain statements discussed in this release as well as in other reports, materials and oral statements that the Company releases from time to time to the public constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995.  Generally, words such as “anticipate,” “estimate,” “expect,” “project,” “intend,” “believe,” “plan,” “target,” “forecast” and similar expressions are intended to identify forward-looking statements.  Such forward-looking statements concern management’s expectations, strategic objectives, business prospects, anticipated economic performance and financial condition and other similar matters.  Forward-looking statements are inherently uncertain and subject to a variety of assumptions, risks and uncertainties that could cause actual results to differ materially from those anticipated or expected by the management of the Company.  These statements are not guarantees of future performance and actual events or results may differ significantly from these statements.  Actual events or results are subject to significant known and unknown risks, uncertainties and other important factors, many of which are beyond the Company’s control.  It should be understood that it is not possible to predict or identify all such factors.  Consequently, the preceding should not be considered to be a complete discussion of all potential risks or uncertainties.  Given these risk factors, investors and analysts should not place undue reliance on forward-looking statements.  Forward-looking statements speak only as of the date of the document in which they are made.  The Company disclaims any obligation or undertaking to provide any updates or revisions to any forward-looking statement to reflect any change in the Company’s expectations or any change in events, conditions or circumstances on which the forward-looking statement is based, except as required by law.  It is advisable, however, to consult any further disclosures the Company makes on related subjects in its filings with the Securities and Exchange Commission, including Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K (if any).  These statements constitute the Company’s cautionary statements under the Private Securities Litigation Reform Act of 1995.Please visit SEACOR Marine’s website at www.seacormarine.com for additional information.
For all other requests, contact Connie Morinello at (346) 980-1700 or [email protected]
 

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