Hornbeck Offshore reports fifth quarterly loss

Market weaken during fourth quarter, leading to more vessel stacking.

Hornbeck Offshore Services reported its fifth quarterly loss in a row as the company continues to stack vessels due to the weak offshore market,

The New York-listed offshore supply vessel (OSV) onwer reported a fourth-quarter loss of $19.2m, compared to a $2.6m loss in the year earlier quarter.

Loss per share was $0.53, which was slightly better than the consensus estimates. But shares reacted negatively dropping $0.20 to $6.25. Revenue was 53% lower than year-earlier levels at $41.8m.

Hornbeck had an average of 46.5 vessels stacked as of the fourth quarter, compared to an average of 44.1 vessels stacked in the third quarter. It expects to stack two more vessels by the third quarter.

Effective day rates continue to weak, Hornbeck reported at its "new gen" OSV day rates falling to $4,842 per day, down 14% from the third quarter.

The Todd Hornbeck-led company said, that even with the current depressed operating levels, cash generated from operations together with cash on hand should be sufficient to fund its operations through the end of 2018.

But the company does not expect to have "sufficient liquidity to repay its three tranches of funded unsecured debt outstanding that mature in fiscal years 2019, 2020 and 2021, . . .absent a refinancing or restructuring of such debt."