crude continues to drop...over 5% just today
and the largest publicly traded OSV operator in the GoM is hemorrhaging severely
HOS reports red ink first quarter
MAY 4, 2017 — Covington, LA, headquartered Hornbeck Offshore Services, Inc. (NYSE:HOS) yesterday reports results for the first quarter ended March 31, 2017.
The company recorded a net loss for the first quarter of 2017 of $27.9 million, or $0.76 per diluted share, compared to a net loss of $7.5 million, year-ago quarter; and a net loss of $19.2 million,for the fourth quarter of 2016.
Included in the first quarter 2017 results is a $9.4 million redelivery fee related to the completion of a long-term contract for one of the company's OSVs and a $3.8 million increase in G&A expense resulting from additional bad debt reserves due to an unfavorable ruling in recent bankruptcy proceedings related to a receivable from a former customer. Excluding the net impact of these two items, net loss and diluted EPS for the first quarter of 2017 would have been $31.7 million.
Revenues were $44.1 million for the first quarter of 2017, a decrease of $32.7 million, or 42.6%, from $76.8 million for the first quarter of 2016; and an increase of $2.2 million, or 5.3%, from $41.9 million for the fourth quarter of 2016. The year-over-year decrease in revenues was primarily due to weak market conditions worldwide, which led to the company's decision to stack 18 incremental vessels on various dates since December 31, 2015.
As of March 31, 2017, the company had 44 OSVs and two MPSVs stacked. For the three months ended March 31, 2017, the Company had an average of 45.9 vessels stacked compared to 33.7 vessels stacked in the prior-year quarter and 46.5 vessels stacked in the sequential quarter.
Operating loss was $26.5 million, or 60.1% of revenues, for the first quarter of 2017 compared to operating loss of $0.8 millionfor the prior-year quarter; and operating loss of $27.5 millionor the fourth quarter of 2016. Excluding the net impact of the two items discussed above, first quarter 2017 operating loss would have been $(32.0) million, or (92.3)% of adjusted revenues.