HOS Reports 4Q Results

Thursday, February 19, 2004
Hornbeck Offshore Services, Inc. said that revenues for the quarter ended December 31, 2003 increased 11.5 percent to $29.2 million compared to $26.2 million for the same quarter in 2002. Operating income was $8.4 million or 28.8 percent of revenues for the fourth quarter of 2003, compared to $9.5 million or 36.3 percent of revenues for the same quarter in 2002. Fourth quarter 2003 net income was $2.1 million compared to $3.3 million for the fourth quarter of 2002. The primary reason for the increase in revenue was the increase in the size of the company’s fleet by an average of 9.2 new generation offshore supply vessels during the fourth quarter of 2003 compared to the fourth quarter of 2002. The decrease in operating margin was primarily due to soft market conditions in the company’s OSV segment and a higher level of drydocking activity in the tug and tank barge segment during the fourth quarter of 2003. For the calendar year 2003, revenues increased 19.7 percent to $110.8 million resulting in operating income of $35.7 million or 32.2 percent of revenues, compared to revenues in the calendar year 2002 of $92.6 million, which resulted in operating income of $34.3 million or 37.0 percent of revenues. Net income totaled $11.2 million for the calendar year 2003, compared to net income of $11.6 million for the calendar year 2002.

OSV Segment

The company took delivery of three newly constructed, new generation OSVs on March 17, June 19, and September 17, 2003, respectively, and purchased a total of six additional new generation OSVs, with five vessels acquired on June 26, 2003 and one vessel on August 6, 2003. The increase in fourth quarter 2003 revenues over the prior year quarter was comprised primarily of incremental revenue from these newly constructed and acquired vessels. The increase in operating costs and depreciation expense for the OSV segment was primarily related to the incremental quarter-over-quarter contribution of the nine vessels added to the OSV fleet.

Tug and Tank Barge Segment

Revenues in the fourth quarter of 2003 were up slightly from the same period in 2002. The decrease in the fourth quarter 2003 operating margin over the year ago quarter resulted primarily from increased drydocking amortization related to vessels recertified during the first nine months of 2003, and roughly 80 more days of drydocking-related downtime during the fourth quarter of 2003. Todd Hornbeck, President and CEO, commented, “Our OSV segment continued to perform well, achieving above industry average utilization and day rates, despite soft market conditions that kept pressure on margins. While we have not yet seen a significant upturn in Gulf of Mexico OSV activity, we are encouraged that several operators are moving forward with large development projects in the Gulf and in several other key producing areas worldwide.” Hornbeck added, “In our tug and tank barge segment, the increase in revenue reflected the expected seasonal upturn in demand in the latter part of the quarter. However, margins were lower due to increased drydocking activity. Seasonal factors continue to positively impact results for our tug and tank barge segment, particularly as January 2004 was the coldest in the Northeast since 1977.”

Delivery of 240 ED class HOS Silverstar

In late January 2004, Hornbeck took delivery of the HOS Silverstar, the Company’s fourth 240 ED class OSV, and commenced testing of the enhanced vessel modifications it elected to make in December 2003. The HOS Silverstar is being placed into service in the second half of February 2004.

Maritime Reporter September 2013 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Cruise Ship Trends

Keel Laid for Holland America Line’s New Ship

Holland America Line celebrated the keel laying of its new 2,650-guest Pinnacle Class ship on August 22 at Fincantieri’s Marghera shipyard in Italy. A 680-ton block

Kiel Port Growth Continues

Cargo and passenger handling rise by 3%. Handling in the Port of Kiel continued to grow in the first half of the year. A total of 3.24 million tons of cargo

Warming Aids Arctic Economies, but Short of 'Cold Rush'

Climate change is aiding shipping, fisheries and tourism in the Arctic but the economic gains fall short of a "cold rush" for an icy region where temperatures are

Finance

NZ's Lyttelton Port Recommends Offer, to Pay Special Dividend

The board of New Zealand's  Lyttelton Port Co. Ltd recommended minority shareholders accept an offer of NZ$3.95 a share offer from the commercial arm of the Christchurch city council.

A Boost for UK Offshore Drilling? DW Monday Muses

Drilling activity offshore UK is now expected to increase over the next few years as government and industry reacts to the recommendations in Sir Ian Wood’s report

MHI, IHI & DBJ Join Forces On Investments

Mitsubishi Heavy Industries, Ltd. (MHI), IHI Corporation and the Development Bank of Japan Inc. (DBJ) concluded a three-way formal agreement today on their respective

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Maritime Security Maritime Standards Navigation Offshore Oil Port Authority Ship Repair Ship Simulators Sonar
rss | archive | history | articles | privacy | terms and conditions | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.2781 sec (4 req/sec)