GulfMark Offshore Records its Highest Ever Q1 Revenue

MarineLink.com
Thursday, April 24, 2014
GulfMark OSV: Image credit the owners

Houston-based GulfMark Offshore President & CEO Quintin Kneen commented on his company's first quarter 2014 financial report: "We recorded our highest first quarter revenue ever, and we still expect 2014 to produce our highest annual revenue ever."

He continued, "We came in just under the midpoint of our first-quarter revenue guidance, which resulted from slightly lower utilization than we originally anticipated, but overall, the average day rate increased during the quarter and we feel comfortable reaffirming our full-year revenue guidance of between $525 and $555 million.

Consolidated revenue for the quarter increased 23% year-over-year, and we expect revenue will increase more than 10% in the second quarter, to be in the range of $131 to $136 million.



The North Sea delivered strong first quarter results in what is typically a slower seasonal period. Our utilization surpassed 90% for the quarter, our highest first quarter utilization in this region since 2010. The average day rate for the region, bolstered by the impact of our new-build vessels, exceeded $22,000, our highest first quarter average since 2008. We continue to expect strong activity for the remainder of the year in the North Sea, and expect average day rates to continue to increase in the second and third quarters.



We completed the last vessel in the North Sea portion of our current new-build program during the first quarter, and based on their performance and profitability we have entered into an agreement to build one more Arctic Class PSV to be delivered in late 2015. We continue to view the Arctic as an area of high potential for these vessels, and as an opportunity to achieve above average returns in the Norwegian market.



The Americas region continued its solid performance and achieved 86% utilization during the first quarter. In the U.S. Gulf of Mexico, we are experiencing the temporary softness we previously discussed and anticipated as vessel deliveries precede new rig additions, and we still expect this market to strengthen during the second half of the year. Our first quarter guidance assumed a utilization rate in the U.S. Gulf of Mexico that was 2.5 percentage points higher than we realized, but the average day rate for the region continued to hold. In addition, we made improvements in our operational efficiency in Brazil that allowed us to keep our utilization above 90% during the quarter in that subregion.



Our Southeast Asia fleet continues to deliver high returns on investment. As we expected, day rates remained steady at just above $15,000 per day; however, our quarterly utilization decreased to 86% simply due to increased drydock days compared to the fourth quarter. Long-term fundamentals continue to improve, and we expect this strength to remain steady during 2014 as the Southeast Asia market continues to increase offshore drilling activity.



We remain optimistic about the near-term and long-term fundamentals of our business, and we will continue to make strategic fleet investments and divestitures that create long-term value for our stockholders and satisfy the intensifying customer demand for safe, efficient, reliable, high-specification vessels around the world."



 

Maritime Reporter September 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

Decade Old India Shipping Summit Makes History

In ten years, India Shipping Summit held consistently in Mumbai, has sailed on a robust growth course despite the worldwide witnessing recessionary waves buffeting any endeavors to grow and gain.

Liebherr to Deliver RTGs to Mayotte and Manila

Liebherr confirms orders for variable speed RTGs and electric RTGs. DPWorld Asian Terminals Inc. has placed an order with Liebherr Container Cranes for a further 5 RTGs at its Manila facility.

U.S. Navy Contracts 12 Rapid Response Skimmers

Kvichak Marine won a US Navy contract for 12 30-ft.Rapid Response Skimmers (RRS) for delivery over the next 18 months, with options for up to 30 additional skimmers to be delivered through 2019.

Offshore

Ezra Bags $70m in Offshore Contracts

Ezra Holdings Limited, a leading contractor and provider of integrated offshore solutions to the oil and gas industry, today announced that the Group’s Subsea Services division,

Rederij Groen Takes Delivery of 7-Waves

Rederij Groen’s entire SRSV fleet built by Damen Maaskant Shipyards Stellendam. Dutch offshore services company Rederij Groen has taken delivery of the 7-Waves,

New Oil Field Found in British North Sea

GDF SUEZ E&P UK Ltd and BP today announced a new exploration discovery in the UK Central North Sea. The discovery, which spans GDF SUEZ operated block 30/1f

Finance

Areva-Siemens Raises Claim Over Finnish Reactor Delays

The French-German consortium Areva-Siemens , the supplier of Finland's much-delayed Olkiluoto-3 nuclear reactor, has increased its claim against Finnish utility Teollisuuden Voima (TVO),

Ezra Bags $70m in Offshore Contracts

Ezra Holdings Limited, a leading contractor and provider of integrated offshore solutions to the oil and gas industry, today announced that the Group’s Subsea Services division,

WFW Advises ING Bank on $340m Loan Facility for Euronav

Watson, Farley & Williams (WFW) has advised ING Bank N.V. (ING) as sole bookrunner and facility agent for a syndicate of banks on a $340 million loan facility made available to Euronav NV.

 
 
Maritime Contracts Maritime Standards Naval Architecture Navigation Offshore Oil Salvage Ship Repair Ship Simulators Shipbuilding / Vessel Construction Winch
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: 0.1791 sec (6 req/sec)