SEACOR Marine(US:SMHI)2026-02-25 22:16Fleet and Operations - As of December 31, 2025, the total fleet consists of 44 vessels, down from 54 in 2024 and 58 in 2023, indicating a reduction of approximately 18% over the two-year period[29]. - The Company operates in four principal geographic regions, with 37 vessels in foreign markets, reflecting a strategic focus on high-margin deployments[29][26]. - The demand for the Company's fleet is influenced by seasonality, with peak demand typically occurring during summer months, particularly for liftboats in the U.S.[33]. - The Company’s fleet reconfiguration aims to meet market demands while focusing on higher margin vessels, resulting in a simplified capital structure[28]. - The Company has a construction project for two foreign flag DP-2 PSVs expected to be delivered in Q4 2026 and Q1 2027, enhancing its fleet capabilities[21]. - As of December 31, 2025, 41 of the Company's owned vessels were outfitted with dynamic positioning (DP) systems, improving operational efficiency and safety[19]. Revenue and Customer Base - The Company’s principal customers accounted for approximately 84% of consolidated operating revenues in 2025, with Azule Energy Angola S.p.A., ExxonMobil Corporation, and SEACOR Marine Arabia LLC contributing 27%, 17%, and 14% respectively[35]. - For the years ended December 31, 2025, 2024, and 2023, 84%, 87%, and 79% of the Company's operating revenues were derived from foreign operations, highlighting the importance of international markets[40]. - The Company’s contracts vary in length from several days to multi-year periods, with many including cancellation clauses without early termination penalties, affecting revenue predictability[37]. Regulatory Compliance and Environmental Impact - The Company is subject to extensive regulations under various international, federal, state, and local laws, particularly concerning environmental protection and safety[42]. - The Company does not expect near-term capital outlays for compliance with laws and regulations to materially affect its financial position or results of operations[43]. - Under the Oil Pollution Act of 1990 (OPA 90), the Company is liable for removal costs and damages from oil spills, with liability limits for non-tank vessels set at the greater of $1,300 per gross ton or $1,076,000[57]. - The Company maintains pollution liability insurance with a limit of $1.0 billion to cover spill removal costs and damages[59]. - The Company is required to comply with the International Safety Management Code (ISM Code) for vessels over 500 gross tons, ensuring safety management and pollution prevention protocols are in place[53]. - The Company has filed a Notice of Intent to be covered by the 2013 Vessel General Permit (VGP) for its U.S.-flag and foreign-flag commercial vessels operating in U.S. waters[62]. - The Company’s operations may be regulated by various U.S. agencies, including the U.S. Coast Guard and the Environmental Protection Agency, which increases compliance costs and risks[52]. - The Company’s vessels are subject to the Maritime Labour Convention (MLC), which establishes minimum working conditions for seafarers, potentially impacting operational costs[49]. - The Company’s compliance with the Jones Act limits foreign ownership of its capital stock to 22.5% to ensure adherence to U.S. maritime law[47]. - Noncompliance with the ISM Code may lead to increased liability, loss of customers, and denial of access to U.S. ports[54]. - The Company believes it is premature to predict additional costs for compliance with new regulations and performance standards under the Vessel Incidental Discharge Act (VIDA) adopted by the EPA in late 2024[64]. - The Company maintains that its Protection and Indemnity insurance should cover liabilities under the International Convention on Civil Liability for Oil Pollution Damage, subject to applicable policy deductibles, exclusions, and limitations[66]. - The Company installs Ballast Water Treatment Systems (BWTS) on its vessels as required by the USCG/EPA and the Ballast Water Management Convention to achieve compliance[70]. - The Company believes all of its vessels maintain a ballast water management plan compliant with applicable regulations, including those under the U.S. National Invasive Species Act[69]. - The Company has implemented flag state approved security plans and other procedures to address applicable security standards in response to heightened security procedures related to ports and vessels[87]. - The Company maintains hull, liability, and war risk insurance, among others, to mitigate risks associated with vessel operations, which include adverse weather conditions and mechanical failures[88]. - The Company is subject to various international conventions and federal, state, and local laws that may impose additional operational costs and regulatory compliance requirements[82]. Sustainability and Workforce - The Sustainability Council, established in September 2020, oversees the Company's environmental, social, and governance (ESG) program, integrating sustainability goals into strategic business activities[89]. - The Company periodically publishes a Sustainability Report detailing its sustainability efforts and ESG practices, with a dedicated section on its website focusing on these initiatives[90]. - The IMO has set a target to reduce greenhouse gas emissions from shipping by 40% by 2030 compared to 2008 levels, with a goal of achieving net-zero emissions by around 2050[79]. - As of December 31, 2025, the Company employed 889 individuals, with a total recordable incident rate of 0.080 and zero pollution incidents reported during fiscal year 2025[92]. - The Company aims to increase female representation in its workforce, with 30% of its onshore workforce being female as of December 31, 2025[94]. - The Company worked over 4.9 million man-hours across its global businesses in fiscal year 2025, recording only one medical incident and one lost time incident[92]. - The Company is committed to providing competitive salaries and comprehensive benefits, including medical, dental, and retirement savings plans like the 401(k) for U.S. employees[96]. - The Company provides various learning opportunities for employees, including leadership and technical skill development[95]. - The Sustainability Council oversees strategies to promote diversity and inclusion within the Company, reflecting the diverse communities it operates in[93]. Financial Risks - The Company is exposed to foreign currency exchange risks but attempts to contract services in U.S. dollars to minimize financial impacts[351]. - The Company does not hedge against foreign currency rate fluctuations in normal business operations, which exposes it to potential exchange rate losses[352]. - The Company's outstanding debt consists solely of fixed interest rate instruments, insulating it from interest rate fluctuations[353]. Health and Safety - The Company has enhanced health and safety protocols, including the provision of personal protective equipment and hydroxyl generators for pathogen control[92].