Cal Dive International, Inc. reported a second quarter 2012 loss of $5.7 million, or $0.06 per diluted share. This compares to a loss of $5.0 million, or $0.05 per diluted share for second quarter 2011.
The results for second quarter 2012 included an effective tax benefit rate of 38%, compared to a higher effective tax benefit rate of 66% for the second quarter 2011 which provided an increased tax benefit of $0.04 per diluted share for 2011.
The operating results for the second quarter of 2012 reflect the negative impact from Tropical Storm Debby that moved through the Gulf of Mexico during the latter half of June and idled over half of the Company’s active fleet during this time. Notwithstanding this impact, operating loss improved $3.3 million compared to the second quarter of 2011, and EBITDA improved by $3.4 million for second quarter 2012 to $10.7 million compared to $7.3 million for second quarter 2011. While there were offsetting factors, the improvements were primarily due to a significant reduction in overhead costs from the Company’s cost reduction measures implemented in 2011.
Quinn Hébert, Chairman, President and Chief Executive Officer of Cal Dive, stated, “We were pleased that we experienced higher utilization during the second quarter 2012 compared to the same period of 2011 as the Gulf of Mexico demand for our services continues to slowly recover. Unfortunately, Tropical Storm Debby negatively impacted the financial benefit we would have realized from the increased activity in June. Specifically, lump sum price contracts were significantly impacted by the storm’s interruption. Looking forward into the third quarter, we expect strong utilization levels domestically and that most of our assets that are available to work will be busy. However, pricing remains very competitive and it is uncertain when we will start to see pricing increase. We remain focused on maintaining our market share in the Gulf of Mexico to allow for strong utilization coupled with continued excellent project execution.
“We remain busy internationally. In Mexico, we have $34 million of revenue remaining in 2012 on our existing contracts and we are actively bidding more work to commence this year. Additionally, we were very pleased with our recent announcement of our alliance with Fugro TSM and our joint charter of the Toisa Paladin. We believe this alliance and such a high class asset will help grow our presence in Australia and provide enhanced opportunities in other parts of the world. Finally, we commenced our first project in West Africa in July and continue to bid for more work in the region.”
Cal Dive International, Inc., headquartered in Houston, Texas, is a marine contractor that provides an integrated offshore construction solution to its customers, including manned diving, pipelay and pipe burial, platform installation and platform salvage services to the offshore oil and natural gas industry on the Gulf of Mexico OCS, Northeastern U.S., Latin America, Australia, Southeast Asia, China, West Africa, the Middle East and the Mediterranean, with a diversified fleet of surface and saturation diving support vessels and construction barges.
Press Release, August 2, 2012