Hornbeck Offshore struck a cautious note on its long-term debt refinancing as it reported weaker than expected first quarter results.
The US offshore outfit says it has sufficient liquidity to get through to the end of next year given its reserves and waivers.
Should the market not recover it will be difficult for the owner to meet debt requirements that fall due between 2019, 2020 and 2021, investors are told.
“Refinancing in the current climate is not likely to be achievable on terms that are in-line with the company's historic cost of debt capital,” Hornbeck said.
“The company remains fully cognizant of the challenges currently facing the offshore oil and gas industry and continues to review its capital structure and assess its strategic options.”
Greg Lewis of Credit-Suisse says the owner has $1.1bn worth of debt due between 2019 and 2021. “Bridging the gap to the recovery and being in a position to consolidate the industry over the next few years remains the focus,” he said of Hornbeck.
The owner booked a loss of $27.9m in the three months to the end of March.
Lewis notes the loss per share of $0.87 was below the $0.77m consensus.
Hornbeck has 43 vessels stacked currently and expects that figure to rise marginally in the coming months.
