GulfMark Turns 1Q Profit on Day Rates
Monday May 9, 2:07 pm ET
GulfMark Offshore Posts First-Quarter Profit on Higher Day Rates, North Sea Exploration
HOUSTON (AP) -- Shares of GulfMark Offshore Inc. rose nearly 7 percent in Monday afternoon trading, after the rig services provider reported a first-quarter profit -- reversing last year's loss -- and soundly beat Wall Street estimates.
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Gulfmark shares rose $1.60, or 6.7 percent, to $25.45 in afternoon trading on the Nasdaq.
Net income totaled $8.9 million, or 43 cents per share, up from a loss of $12.2 million, or 61 cents per share, a year ago. Excluding a change in accounting for dry dock expenditures, the company reported a loss of $4.9 million, or 25 cents per share, in the 2004 period.
Analysts surveyed by Thomson Financial expected earnings per share of 22 cents in the latest quarter.
GulfMark attributed the profit in the current quarter to continued strengthening of day rates in the North Sea, the addition of two vessels and improved utilization in the North Sea and Southeast Asia. Average day rates in the North Sea increased 14.9 percent to $16,251 from $14,134 last year, while utilization in the region grew sequentially to 90 percent from 83 percent in the fourth quarter.
Revenue rose 52 percent to $48.1 million from $31.6 million last year.
"The outlook for the remainder of 2005 is encouraging as we see increasing rig demand and lengthening rig contracts, some now extending well into the period 2006-2007," said Bruce Streeter, president and chief operating officer, in a statement. "In addition, the number of North Sea construction projects slated for the 2005 and 2006 construction seasons will support strong demand for vessels."
Analysts estimate GulfMark's full-year earnings at $1.39 per share.
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