Hornbeck Offshore to Have 30 OSVs Stacked by End of Year

Stacked Hornbeck OSVs hidden away in a Louisiana bayou in April 2015.
Stacked Hornbeck OSVs hidden away in a Louisiana bayou in April 2015.

 

Hornbeck Offshore is set to have more than 30 OSVs fleet stacked by year-end as the slump in oil prices continues to wreck havoc on the offshore market.

The company, which owns and operates a fleet new generation OSVs mostly working in the U.S. Gulf of Mexico, revealed the new numbers in its Third Quarter results released Wednesday.

Hornbeck said it now has 27 new generation OSVs laid-up, with another three pending for Q4. By year end, the 30 stacked vessels will represent about half of the company’s OSVs. Hornbeck’s fleet currently consists of 59 OSVs, but that is expected to increase to 61 vessels if scheduled deliveries in Q4 go according to plan.

Hornbeck last reported it had 18 new generation OSVs stacked in its Q1 results released in April. At the time, the company said the lay-ups were part of aggressive cost cutting measures undertaken in response to soft market conditions. Other measures included company-wide headcount reductions and across-the-board pay-cuts for shore-side personnel, the company said in April.

Hornbeck reported that for the third quarter of 2015, revenues were $116.3 million, a decrease of $50.6 million, or 30.3%, from the same period last year.

In 2016, the company says it expects to have an average of 30 new generation OSVs stacked throughout the year.

Right now, Horneck is in the midst of its fifth OSV newbuild program, consisting of 24 vessels total. Of those, 17 have already been placed in service, with the seven remaining expected be delivered in Q4 2015 and 2016. Hornbeck warned however that it has experienced deficiencies at two of the shipyards, which could potentially impact their scheduled delivery.