Hvide Marine Announces 4Q and Full Year Results

Hvide Marine Inc. reported net income in the fourth Quarter ended December 31, 1998 totaled $1.9 million, compared with $9.8 million in the year-earlier period. Revenues for the quarter grew to $105.9 million from $67.4 million a year ago, as a result of increases in fleet size. For the full year, income before an extraordinary item totaled $22.5 million versus $27.6 million before an extraordinary item in 1997. After a loss related to the early extinguishment of debt, net income in 1998 was $21.7 million compared with $25.5 million in 1997. Revenues of $401.9 million in 1998 were up from $210.9 million in 1997, reflecting the growth in the company's fleet from 220 vessels to 282 vessels. "Good results in our towing, tanker and international offshore businesses in the fourth quarter were offset by the continued falloff in the Gulf of Mexico," said J. Erik Hvide, chairman, president and CEO. "Our supply boat day rates in the Gulf are down an average of 40 percent from last year's fourth quarter, as a result of the record low price of oil and the consequent reduction in drilling activity. We have responded to this situation by redeploying a number of vessels out of the Gulf of Mexico and inititiating a series of cost control measures to reduce worldwide capital spending, operating expenses and G&A." During the fourth quarter, a company affiliate took delivery of three new 46,000-ton double-hull tankers from New port News Shipbuilding - HMI Nantucket Shoals, HMI Cape Lookout Shoals and HMI Diamond Shoals - giving the company the most modern fleet of double-hull vessels in the Jones Act trade. The compan also bolstered its position in the deepwater segment of the offshore market by taking delivery of two 205-ft. platform supply vessels (Seabulk Wisconsin and Seabulk Kansas) and one 152-ft. crew/supply vessel, Seabulk St. Andrew.