SEACOR Marine(US:SMHI)2024-10-30 20:30Fleet Operations - As of September 30, 2024, the Company operated a fleet of 55 support vessels, with 54 owned or leased-in and one managed on behalf of a third party[88]. - The Company operates in four principal geographic regions: the U.S. (primarily Gulf of Mexico), Africa and Europe, the Middle East and Asia, and Latin America (primarily Mexico and Guyana)[90]. - The fleet count as of September 30, 2024, included 53 vessels, with 2 AHTS, 22 FSV, 21 PSV, and 8 Liftboats[117]. Market Conditions - During the nine months ended September 30, 2024, WTI oil prices fluctuated between a high of $87 per barrel and a low of $66 per barrel, ending the period at $68 per barrel[93]. - The Company closely monitors the offshore support vessel market, as demand and day rates are influenced by supply and demand dynamics, including oil and natural gas prices[95]. - The Company expects that alternative forms of energy, such as offshore wind farms, will continue to grow, supporting some of its operations[96]. Financial Performance - Operating revenues for time charter reached $63,313,000, a decrease of 7.5% from $68,668,000 in the prior year[103]. - Net loss for the quarter was $16,346,000, compared to a loss of $883,000 in the same period last year, marking a significant deterioration[103]. - The company reported a loss before income tax of $17,871,000, a significant increase from a loss of $796,000 in the prior year[103]. Cost Management - The Company adheres to a strategy of cold-stacking vessels to manage costs, considering factors such as regulatory inspections and market conditions[97]. - Personnel costs rose to $21,940,000, representing 32% of total operating expenses, up from 26% in the previous year[103]. - Total operating expenses increased to $77,218,000, a rise of 15.9% from $66,555,000 year-over-year[103]. Revenue and Utilization - Average daily rates increased to $18,879 for the three months ended September 30, 2024, compared to $18,046 in the same period last year, reflecting a growth of 4.6%[103]. - Fleet utilization decreased to 67% from 73% year-over-year, indicating a decline in operational efficiency[103]. - Average rates per day for time charter were $19,021, with fleet utilization at 66%[106]. Cash Flow and Liquidity - Cash flows used in operating activities for the nine months ended September 30, 2024, were $(18.8) million, a decrease of $29.2 million compared to the prior year[158]. - The Company held cash, cash equivalents, and restricted cash totaling $37.9 million, down from $58.6 million as of September 30, 2023[154]. - The Company believes that cash balances, cash generated from operations, and access to credit markets will provide sufficient liquidity for capital expenditures and debt service[163]. Debt and Financing - The Company had outstanding debt of $300.9 million as of September 30, 2024, with long-term debt maturities totaling $331.2 million[154]. - The Company made scheduled payments on long-term debt and other obligations totaling $21.8 million during the current year[161]. - The Company has approximately $24.9 million of remaining sales capacity under its ATM Program as of September 30, 2024, to support liquidity needs[153]. Regional Performance - Time charter revenues in Africa and Europe increased to $28.8 million in the Current Year Quarter, up from $22.5 million in the Prior Year Quarter[124]. - Charter revenues in the Current Year Quarter for the Middle East and Asia were $6.3 million higher, driven by repositioning of vessels and increased day rates[125]. - Direct vessel profit in the Middle East and Asia was $3.8 million in the Current Year Quarter, a decrease from $5.1 million in the Prior Year Quarter[130]. Future Outlook - The Company is focused on expanding its market presence and enhancing operational efficiency through strategic initiatives[115]. - Future outlook includes continued focus on market expansion and potential new product development to enhance service offerings[116].