Seacor Marine Holdings has narrowed its loss for the third quarter as the economy continues to come back from Covid-19, but it still may sell some equity to boost its coffers.
The New York-listed owner of offshore support vessels posted a net loss of $883,000 for the three-month period, up from a net loss of $24.4m for the same period last year.
Revenue for the quarter totalled $75.6m, up from $59.8m collected a year earlier. The company’s third-quarter direct vessel profit was $38.6m, up from $15.8m during the year-ago period.
“The company’s third-quarter results reflect continued progress in the cyclical recovery with a meaningful improvement in average day rates,” chief executive John Gellert said in a statement.
“The third quarter also illustrates the strong recovery in cash flows from operations with another consecutive quarter of meaningful increase in [direct vessel profit], reaching levels not seen since 2014.”
He said the company’s two business segments — one focused on the US Gulf Coast and the other on Africa and Europe — “contributed positively” to the improved results.
“Our US business segment showed very strong growth, driven by higher levels of activity and improved average day rates, especially in wind-farm support,” he said.
“Our international segments also generated improved [direct vessel profit] compared to the third quarter of 2022, despite lower utilisation driven mostly by downtime for repairs and scheduled dry-dockings.”
The US segment earned $21.7m in revenue for the quarter, up from $19.2m collected a year earlier. Average time charter rates improved to $23,663 per day during the quarter from $21,551 per day during the same quarter in 2022.
The division that works in Africa and Europe posted $23.3m in revenue for the period, up from $17.6m a year ago. Average time charter rates for the third quarter came in at $15,388 per day, up from $11,813 per day during last year’s third quarter.
Seacor Marine announced on Wednesday that it may from time to time offer up to a total of $25m in at-the-market common shares through an in-effect shelf registration. B Riley Securities will act as a sales agent.
Seacor Marine plans to use the offering’s proceeds for general corporate purposes, which may include adding to working capital, capital expenditures, repaying debt or paying for possible acquisitions and investments.
The company also narrowed its loss incurred during the first nine months of the year. It posted $15m in net loss, up from $58.3m in net loss for the corresponding period in 2022.
Seacor Marine brought in $202m for the first nine months of this year, up from $159m in revenue during the same stage in 2022.
