Gulfmark six cents short

Record second quarter revenue was not enough to keep Gulfmark Offshore’s second quarter results up with Wall Street expectations.

New York-listed Gulfmark booked a gain of $14.20m for the three months to the end of June, up from $9.86m a year ago.

Earnings per share of $0.91 missed the consensus among analysts by six cents.

Quintin Kneen, chief executive of the owner, says a strong performance in the Gulf of Mexico and a larger fleet pushed revenue above $500m for the first time. However, the North Sea and Southeast Asian markets were weaker than expected.

Kneen said: "The Americas region performed above our expectations during the quarter and achieved 92% utilization. The US Gulf of Mexico, in particular, delivered strong results. We are exceptionally pleased with the increased activity, which included utilization of 90% during the quarter.”

He added: “This increase in utilization for the US Gulf of Mexico gives us confidence that this market will strengthen during the second half of the year and into next year.

“Elsewhere in the Americas, Brazil continued to improve operational efficiency, achieving 95% utilization during the quarter, and Mexico continued its strong performance, achieving a utilization rate of 97%.”

Gulfmark presently has 35 vessels in the North Sea, 15 in Asian waters and 29 in the Gulf of Mexico.

"Our Southeast Asia fleet, as we expected, earned an average rate just above $15,000 per day for the quarter; however, our quarterly utilization decreased to 81%”, Kneen said.

“Activity levels in Vietnam have decreased during the quarter and the area as a whole experienced more political uncertainty than usual, which impacted our utilization in the region.

“This market may continue to be a bit softer in the second half of 2014, but we expect the long-term fundamentals to continue to improve.”

Profit for the first half of the year was $30.76m, beating the $12.73m of a year ago.

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