SEACOR Holdings Inc. (CKH) saw its loss widen to $93.75 million, or $5.52 a share for the quarter ended Dec. 31, 2016. In the previous year period, the company reported a loss of $56.86 million, or $3.36 a share.
Revenue during the quarter dropped 15 percent to $213.04 million from $250.63 million in the previous year period. Operating margin for the quarter stood at negative 46.64 percent as compared to a negative 0.37 percent for the previous year period.
Operating loss for the quarter was $99.36 million, compared with an operating loss of $0.93 million in the previous year period.
Charles Fabrikant, executive chairman and chief executive officer, commented: "Our operating income before depreciation, amortization and impairments was slightly better than the preceding quarter although those results do not deserve accolades. During the past 12 months, our Offshore Marine Services' customers cut back on exploration, development, maintenance, and deferred regulatory requirements when possible. The cutbacks were indiscriminate, impacting projects in deep water and shelf.The "dismal" outlook prophesied in my annual letter of last April was, sadly, correct. I do think 2017 offers better prospects for activity on the shelf, more dollars for maintenance, and attention to regulatory obligations. I also believe that by the end of 2017, or early 2018, activity will increase in Mexico. The potential is mostly in shallow water. Unfortunately, the prospects for deep water and frontier drilling are still bleak. Finally, based on published data, 25 FPSO's are due to be placed in service between 2017 through 2019, and there will be 238 platforms installed although some will be quite simple and not manned."
Working capital drops significantly
SEACOR Holdings Inc. has witnessed a decline in the working capital over the last year. It stood at $392.85 million as at Dec. 31, 2016, down 42.88 percent or $294.89 million from $687.74 million on Dec. 31, 2015. Current ratio was at 2.06 as on Dec. 31, 2016, down from 4.44 on Dec. 31, 2015.
Debt comes down marginally
SEACOR Holdings Inc. has recorded a decline in total debt over the last one year. It stood at $1,032.37 million as on Dec. 31, 2016, down 3.55 percent or $38.02 million from $1,070.39 million on Dec. 31, 2015. Total debt was 36.07 percent of total assets as on Dec. 31, 2016, compared with 33.60 percent on Dec. 31, 2015. Debt to equity ratio was at 0.86 as on Dec. 31, 2016, up from 0.77 as on Dec. 31, 2015.
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