Cal Dive International reported today a first quarter 2012 loss of $24.3 million, or $.26 per diluted share, primarily due to the regulatory drydocks of three of the company’s most profitable assets, including longer than expected out of service time for the upgrade of the Uncle John.
The $24.3 million loss compares to a net loss of $18.7 million, or $.20 per diluted share for first quarter 2011, which experienced higher activity in the first quarter 2011 from a large construction project in the Bahamas the company says did not re-occur in the first quarter 2012.
“Our first quarter results reflect the regulatory dry docking of three of our most profitable assets combined with the typical winter seasonality in the US Gulf of Mexico,” said Quinn HÃ©bert, Chairman, President and Chief Executive Officer of Cal Dive. “The financial impact from the combined out of service time for the three assets in drydock was greater than expected as the upgrade of the Uncle John, our most profitable asset, took longer than expected, which prevented it from working during the entire first quarter. The good news is that the vessel is now working and it is booked for most of the rest of the year. In addition, our first quarter financial results were negatively impacted by the delay to the second quarter of the majority of a large salvage project.
“Now that the drydocks and winter weather are behind us, we look forward to increased activity levels in the second quarter, especially in the Gulf of Mexico. However, pricing is expected to remain relatively flat as the activity levels are still recovering. In Mexico, we commenced a construction project in early April. We look for meaningful improvement in our financial results for the second quarter of 2012.”
The upgrade of the Uncle John, a DP saturation diving support vessel, will enable the vessel to perform light well intervention work and was complete in early April.
A full Q1 report can be found HERE.