Trico Earnings Nicked by Suffering Day Rates

Trico Marine Services, Inc. reported a net loss for the second quarter ended June 30, 1999, of $10.8 million after an extraordinary one-time charge of $1.8 million. This compares to net income of $11.7 million for the second quarter of 1998. Second quarter 1999 revenues were $26.7 million compared to $52.9 million last year. For the first six months of 1999, the net loss before extraordinary items was $16.3 million on revenues of $55 million. After the extraordinary charge, the net loss was $18.2 million. This compares to net income of $21.6 million on revenues of $101.8 million for the first six months of 1998. Trico's net loss for the second quarter resulted from decreases in average day rates for all classes of the company's vessels. Supply boat day rates in the Gulf of Mexico averaged $3,123 for the quarter, compared to $8,065 for the same period last year, and $3,662 for the first quarter of 1999. Day rates for lift boats in the Gulf of Mexico averaged $4,016 in the second quarter of 1999 compared to $6,072 last year. Second quarter results were also affected by an unusually high level of vessel downtime and repair and maintenance expenses for several of Trico's larger vessels, which normally earn higher day rates. Additionally, the company experienced delays in shipyard deliveries for two new vessels -- one in the North Sea and one in the Gulf of Mexico -- which had been expected to contribute to second quarter results. The utilization rate for Trico's Gulf of Mexico supply boats was 52 percent for the second quarter 1999, compared to 70 percent a year ago. Drydocking and vessel refurbishment impacted the company's supply boat utilization rates for both periods, and deactivation of 10 supply boats impacted 1999 utilization.