Hornbeck Offshore reported 55.5% revenue decrease in Q3 2016

Hornbeck Offshore OSVThe US supplier Hornbeck Offshore Services reported 55.4% yoy revenue decrease in Q3 2016 to 51.90 million USD, due to decline in offshore oil and gas industry and overcapacity on the market. During the reported period, the EBITDA of of the company amounted to 15.2 million USD in Q3 2016. The average dayrate decreased to 25,639 USD and the utilization of the fleet dropped to 22%. Hornbeck Offshore Services reported net loss of 16.5 million USD, which is representing 28% from the revenues, staying far below the same period last year. The company continue to suffer from decreasing number of new contracts, low liquidity and reducing cash flows. The total cash of the company was 225 million USD with only 72 million USD of growth and CAPEX remaining to be funded under the 24-vessel newbuilding program.

The offshore supplier already stacked 41 from its 62 offshore vessels this year, but the downtrend is expected to continue in 2017, when the stacked ships will grow to 48, which represent 80% from the whole OSV fleet.

However, the effective utilization of the company’s active gen OSVs was 76% against 74% during the previous quarter. The diluted EPS was 0.45 USD, representing an improvement of 0.12 USD from the previous quarter.

Hornbeck Offshore Services provides logistics and other support to offshore oil E&P companies, through its subsidiaries and operates offshore supply vessels (OSVs), multi-purpose support vessels (MPSVs), and a shore-base facility. The company provide logistics support and specialty services to the offshore oil and gas exploration and production industry, primarily in USA, Gulf of Mexico, and select international markets. Hornbeck Offshore Services is a provider of marine services to exploration and production, oilfield service, offshore construction and military customers. Its Upstream segment owns and operates fleets of United States flagged, new generation OSVs and United States-owned fleets of DP-2 and DP-3 MPSVs.