Hornbeck Offshore, one of the largest operators of offshore supply vessels in the U.S. Gulf of Mexico, revealed Thursday that the company has now stacked a total of 18 new generation OSVs, part of aggressive cost cutting measures undertaken by the company in response to tough market conditions.
The number of stacked vessels is up 12 OSVs since last reported, the company revealed in its first quarter results released Thursday.
The stacking of the 18 new generation OSVs has occurred on various dates since October 1, 2014, Hornbeck said, and is just one of several cost containment measures recently initiated by company. Other measures include company-wide headcount reductions and across-the-board pay-cuts for shore-side personnel.
The company was still able to post a net income of $35.8 million on $134.6 million in revenues in Q1, according to the results.
As of March 31, 2015, the company’s fleet consisted of 60 new generation OSVs and five MPSVs, including 16 new HOSMAX vessels that have been placed in-service. Hornbeck has an additional eight newbuild HOSMAX vessels due for delivery during 2015 and 2016.
Hornbeck said that the average dayrates for new generation OSVs in Q1 2015 were $26,705, down $900 from the previous quarter and in-line with the prior-year quarter.
The company reported operating expenses of $61.4 million in Q1 2015, a decrease of $7.2 million, or 10.5% compared to Q1 2014 and a decrease of $18.7 million, or 23.3%, from Q4 2014. Hornbeck said that this year-over-year decrease in the operating expenses was due to the number of vessels idled or stacked since late 2014, which has resulted in a substantial reduction in mariner headcount.
Hornbeck attributes the results to soft market conditions for high-spec OSVs operating in the GoM spot market.
Hornbeck’s full Q1 2015 results can be found on its website.