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PRESS RELEASE
FOR IMMEDIATE RELEASE
October 31, 2000 - Houston - GulfMark Offshore, Inc. (NASDAQ:GMRK)
today announced net income for the quarter ended September 30, 2000 of
$5.3 million, or $0.63 per share (diluted), on revenues of $21.0
million. This compares to net income of $0.6 million, or $0.07 per
share (diluted), on revenues of $18.5 million for the third quarter of
1999. The quarter includes a pre-tax gain of $3.6 million related to the
previously announced sale of the Highland Fortress for $8.5 million in
July 2000. Excluding the effect of this item, the Company would have
reported net income of $0.33 per diluted share for the third quarter.
During the third quarter of 2000, the Company experienced an
increase in vessel utilization in all markets compared to the second
quarter of 2000. The North Sea market utilization was 98.9% for the
third quarter compared to 92.8% for the second quarter as all but four
of nineteen boats operated at full capacity. The Southeast Asia market
utilization also improved quarter over quarter as the twelve vessels in
this fleet averaged 70.4% in the third quarter versus 62.6% in the
second quarter. Utilization was the single largest factor in the
revenue increase of $0.9 million from the second quarter to the third
quarter as dayrates were static during the comparable periods. The
improved utilization in the third quarter more than offset the loss of
revenue experienced from the sale of the Highland Fortress which had
been working on the spot market pending transfer to the buyers.
Bruce Streeter, President and COO said, "We are encouraged by the
increases in utilization in both the North Sea and Southeast Asia
markets. The North Sea dayrates have continued to improve from the
second quarter forward and look to hold firm during the winter months.
The demand for term contracts has also increased during the third
quarter but has not yet returned to the robust levels of 1998. The
Southeast Asia market has experienced what appeared to be several early
stages of a solid recovery during the last six months, only to be
followed by periods of reduced demand and flat dayrates. We are
optimistic, however, that both of these markets will continue to improve
as the level of spending on exploration and development is forecast to
increase throughout 2001."
GulfMark will hold a conference call to discuss the third quarter
earnings with analysts, investors and other interested parties at 10:00
A.M. CST/11:00 A.M. EST on Wednesday, November 1, 2000. Those
interested in participating in the conference call should call 800/288-
8968 (612/332-1025, if outside the U.S. and Canada) 5-10 minutes in
advance of the start time and ask for the GulfMark conference. The
conference call will also be available via audio Webcast at
http://www.vcall.com. A replay will be available after the conference
call at 800/475-6701 (320/365-3844 if outside the U.S. and Canada) with
the access code of 547062.
Contact: Edward A. Guthrie, Executive Vice President
(713) 963-9522
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This press release contains certain forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of 1995,
which involve known and unknown risk, uncertainties and other factors.
Among the factors that could cause actual results to differ materially
are: price of oil and gas and their effect on industry conditions;
industry volatility; fluctuations in the size of the offshore marine
vessel fleet in areas where the Company operates; changes in competitive
factors; and other material factors that are described from time to time
in the Company's filings with the SEC. Consequently, the forward-looking
statements contained herein should not be regarded as representations
that the projected outcomes can or will be achieved.
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GULFMARK OFFSHORE, INC.
Press Release - For Immediate Release
October 31, 2000
OPERATING RESULTS
(in 000's except per share amounts)
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
September 30, September 30,
------------------ -----------------
2000 1999 2000 1999
-------- -------- -------- --------
<S> <C> <C> <C> <C>
Revenues............................. $20,968 $18,502 $55,420 $59,251
Direct operating expenses............ 8,663 9,037 25,287 25,918
Bareboat charter expense............. 1,632 1,769 5,063 5,288
Depreciation and amortization........ 3,112 3,077 9,596 9,426
General and administrative expenses.. 1,573 1,343 4,683 4,456
------- ------- ------- -------
OPERATING INCOME................ 5,988 3,276 10,791 14,163
Interest expense, net of interest
income............................. (2,604) (2,378) (8,219) (6,836)
Income (loss) from unconsolidated
venture............................ 217 (329) (294) (365)
Gain on sale of assets............... 3,601 -- 3,601 --
Other, net........................... 253 112 399 190
------- ------- ------- -------
Income before income taxes........... 7,455 681 6,278 7,152
Income tax provision................. (2,154) (117) (1,717) (1,877)
------- ------- ------- -------
Net income...................... $ 5,301 $ 564 $ 4,561 $ 5,275
======= ======= ======= =======
BASIC EARNINGS PER SHARE:
NET INCOME...................... $ 0.65 $ 0.07 $ 0.56 $ 0.65
======= ======= ======= =======
DILUTED EARNINGS PER SHARE:
NET INCOME...................... $ 0.63 $ 0.07 $ 0.55 $ 0.64
======= ======= ======= =======
Weighted average common shares....... 8,164 8,129 8,155 8,127
Weighted average diluted common
shares............................. 8,342 8,302 8,315 8,274
Rates Per Day Worked
North Sea based fleet.............. $ 9,447 $ 9,823 $ 8,992 $10,248
Southeast Asia based fleet......... 3,847 3,797 3,860 4,458
Brazil based fleet................. 8,663 10,727 8,144 9,353
Overall Utilization %
North Sea based fleet.............. 98.9% 83.5% 89.3% 90.6%
Southeast Asia based fleet......... 70.4% 69.4% 62.3% 63.7%
Brazil based fleet................. 99.9% 82.0% 97.3% 90.1%
Average Owned or Chartered
North Sea based fleet.............. 18.3 18.9 18.7 18.3
Southeast Asia based fleet......... 12.0 11.0 12.0 11.0
Brazil based fleet................. 3.0 2.0 3.0 2.0
------- ------- ------- -------
Total........................... 33.3 31.9 33.7 31.3
======= ======= ======= =======
</TABLE>
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