SEACOR Marine (SMHI) Q2 2024 earnings summary

Executive summary

• Q2 2024 operating revenues rose to $69.9 million, up 2.3% year-over-year, driven by higher day rates but offset by lower utilization.

• Net loss widened to $12.5 million ($0.45/share) for Q2 2024, compared to $4.6 million loss in Q2 2023, reflecting lower fleet utilization and higher costs.

• The company operates a global fleet of 56 support vessels, primarily serving offshore energy and wind farm markets across four regions.

• Average day rates increased 25.5% year-over-year to $19,141; utilization fell to 69% from 78% last year but improved from 62% in Q1.

• Contracted revenue backlog stands at $403.9 million with an average contract duration of about one year.

Financial highlights

• Q2 2024 operating revenues increased 2% year-over-year to $69.9 million; six-month revenues rose 2% to $132.6 million.

• Direct vessel profit for the first half was $35.0 million, down from $53.3 million year-over-year, mainly due to lower utilization and higher drydocking and repair costs.

• Cash, cash equivalents, and restricted cash totaled $42.9 million as of June 30, 2024, with outstanding debt of $306.3 million.

• Administrative and general expenses decreased to $10.9 million from $13.7 million year-over-year.

• Cash used in operating activities was $19.4 million for the first half, compared to $3.3 million provided in the prior-year period.

Outlook and guidance

• Maintenance schedule is well advanced, expected to improve utilization for the remainder of 2024 and into 2025.

• Improved pricing and utilization anticipated to drive significant performance gains.

• Management expects continued volatility in offshore oil and gas markets but notes some support from pent-up maintenance demand and offshore wind activity.

• Four additional PSVs to be fitted with hybrid battery systems over the next 12 months, enhancing fleet technology.

• The company believes current liquidity, cash flow, and access to capital markets are sufficient to meet obligations and support capital expenditures.