World News
Tidewater Profits Slip as Revenues Rise
Revenues for offshore service vessel (OSV) provider Tidewater Inc. [NYSE:TDW] (Tidewater) rose to $331.6 million in the quarter ended June 30, up from $290.1 million year-over-year, but the company's quarterly profit fell 8 percent to $30.1 million, the company reports.
The company's costs for fuel, lube, and supplies over for the quarter, Q1 of its 2014 fiscal year, rose to $18.8 million from $17.7 million in Q1 2013.
CEO Jeffrey M. Platt said on the company's earnings call that the quarter was "strategically important," with milestones including the completion of the acquisition of Troms Offshore Supply and Tidewater's full exit from the ship repair and construction business.
"Our exit from a noncore business will allow our team to focus on: one, optimizing what we expect to be a multiyear up cycle in our core OSV business; and two, developing a business model to deliver differentiated services to our clients," Platt said.
The overall average vessel day rate for the quarter was $16,976, up from $14,275 one year before.
Platt said the company should benefit from growing activity by oil and gas companies seeking new hydrocarbon reserves and higher production levels.
"The quest for energy is expanding offshore into more international areas and more challenging areas, which bodes well for our company with our global geographic spread of operations," he said.
Key Bunker Prices More
| VLSFO | MGO | |||
|---|---|---|---|---|
| $/mt | +/- | $/mt | +/- | |
| Singapore | 504.50 | 2.50 | 620.00 | 3.00 |
| Rotterdam | 456.00 | 1.50 | 621.50 | 2.00 |
| Houston | 476.00 | 7.00 | 624.00 | 1.00 |
| Fujairah | 496.50 | 2.00 | 713.00 | 2.50 |
| Global 20 Ports Average | 526.50 | 0.50 | 712.00 | 0.50 |
| Global 4 Ports Average | 483.00 | 2.00 | 644.50 | 0.50 |
| Global Average Bunker Price | 570.50 | 1.50 | 751.00 | 1.00 |
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