SEACOR Marine Announces Third Quarter 2024 Results

Core Insights - SEACOR Marine Holdings Inc. reported a consolidated operating revenue of $68.9 million for Q3 2024, a decrease of 10.4% from $76.9 million in Q3 2023 and a slight decrease of 1.4% from $69.9 million in Q2 2024 [2][3] - The company experienced an operating loss of $6.5 million in Q3 2024, compared to an operating income of $9.8 million in Q3 2023 and an operating loss of $3.9 million in Q2 2024 [2][4] - Direct vessel profit (DVP) for Q3 2024 was $16.0 million, down from $36.8 million in Q3 2023 and $20.3 million in Q2 2024, reflecting a DVP margin of 23.2% [2][3] Financial Performance - The net loss for Q3 2024 was $16.3 million, or $0.59 loss per share, compared to a net loss of $0.9 million ($0.03 loss per share) in Q3 2023 and a net loss of $12.5 million ($0.45 loss per share) in Q2 2024 [4][10] - Average day rates for the company were $18,879, which is a 4.6% increase from Q3 2023 but a 1.4% decrease from Q2 2024 [3][12] - Fleet utilization was reported at 67%, down from 73% in Q3 2023 and 69% in Q2 2024 [3][12] Operational Challenges - The decrease in utilization was attributed to a heavy maintenance schedule and lower-than-expected demand, particularly in the U.S. Gulf of Mexico and North Sea markets [5] - The company faced increased operating expenses, with crewing costs up by 9.9% and maintenance costs up by 30.0% compared to the same period in 2023 [5] - Drydocking and major repairs during the quarter amounted to $8.3 million, significantly higher than $2.0 million in Q3 2023 and comparable to $8.5 million in Q2 2024 [3][5] Future Outlook - The company anticipates a return to work for one of its premium liftboats in the U.S. Gulf of Mexico in early November 2024, following maintenance [6] - There is an increase in inquiries for decommissioning work for liftboats in the 2025-2026 timeframe, indicating potential future demand growth [6] - SEACOR Marine maintains a contracted revenue backlog, including options, exceeding $360.0 million, which may support future revenue stability [5][6]