Trico slumps

Red ink from each of its shipping segments sent Trico Marine Services to a loss in the first quarter of 2009.

Joseph Compofelice.

Nasdaq-listed Trico posted a $747,000 deficit in the three month to 31 March, against a profit of $10.90m a year earlier.

Joseph Compofelice, chairman and CEO of the offshore shipowner, said: "Our first quarter results were adversely affected by the sharp decline in day rates and utilisation in our Towing and Supply segment in the North Sea and US Gulf of Mexico, lower utilisation of our Subsea Services vessels and lower activity in our Subsea Trenching and Protection segment both due to seasonality and vessels in transit.”

Trico slipped to an operating loss of $16.17m for the quarter.

Its Towing and Supply unit, the only part of the operation to make a profit in the previous quarter, posted a $459,000 operating loss.

Reversals at its Subsea Services unit reached $5.48m, a performance Trico describes as below its own expectations.

Its figures were not helped by a decision not to market a vessel ahead of it beginning a long-term contract in April.

Operating losses at Trico’s Subsea Trenching operation reached $3.24m, due to seasonal softness in the market and the relocation of two vessels.

Overall, Trico posted a loss of $0.04 per share, a figure which includes a non-cash gain of $10.8m from the conversion of a 6.5% convertible debt and an $18.6m one-off gain following the introduction of a new Norwegian tax system.

Looking forward, Compofelice said: “Each of the 16 vessels at DeepOcean and CTC Marine are now earning revenue under contracts of various lengths at margins consistent with those realized in 2008, and we expect this to translate into improved operating results in the second and third quarters.”

Separately, Trico has launched legal action against Bender Shipbuilding & Repair over the alleged late delivery of two newbuildings last year, sources say.

US-listed Trico is suing the shipyard for $5m in a case relating to the 2,308-dwt Trico Mystic and the 2,308-dwt Trico Moon (both built 2008).

Trico took delivery of the first PSV in the third quarter last year with the second following in the fourth quarter, with a total delay of nine months. Both are now working on term contracts in Mexico.

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