<PAGE>1
PRESS RELEASE
FOR IMMEDIATE RELEASE
GulfMark Offshore Reports
Financial Results
August 8, 2000 - Houston - GulfMark Offshore, Inc. (NASDAQ:GMRK) today
announced net income for the quarter ended June 30, 2000 of $1.4 million, or
$0.17 per share (diluted), on revenues of $20.0 million. This compares to net
income of $1.8 million, or $0.22 per share (diluted), on revenues of $19.6
million for the second quarter of 1999. When compared to the first quarter of
2000, the current period reflects increases of $5.6 million in revenues, $4.8
million in operating income and $3.6 million in net income as the Company
continues to benefit from improving markets globally.
The majority of the improvements in the current quarter were realized late in
the period as the Company's fleets in all markets experienced both higher
dayrates and utilization. The North Sea based fleet saw average dayrates and
utilization increase to $9,507 and 92.8%, respectively, in the second quarter
compared to $7,608 and 78.4% in the first quarter. Average dayrates in both
Southeast Asia and Brazil showed slight increases when compared to the first
quarter, while utilization in these regions increased by 8.9% for the 12 boats
in Southeast Asia and 1.9% for the 3 boats in Brazil.
The Company's results for the second quarter of 2000 compared to the second
quarter of 1999 also show some favorable trends. While the overall dayrate
and utilization were lower in the current year period, the operating income
reflects an improvement as a result of the additions of the Highland Pioneer,
the Highland Guide and the Highland Scout. Net income is lower in the current
quarter than in the same quarter last year due to capitalized interest expense
in 1999 (approximately $0.4 million). Bruce Streeter, President and COO, said
"The improvement in activity we began to see late in the first quarter in the
North Sea has continued throughout the second quarter and now into the third.
Term rates have been steadily climbing to the present level and are currently
near the average rates that we saw during 1999. Improvements in the Southeast
Asia fleet, while not as pronounced as in the North Sea, have begun to
materialize. Utilization has seen a steady improvement which is normally a
precursor to rate improvements. The number of requests for proposals
indicates a level of optimism and signals an increase in activity for the
region."
The Company's $75.0 million credit facility remains unused and working capital
currently stands at $35.3 million. As was announced on August 7, 2000,
subsequent to the end of the quarter, the Company's cash position received an
infusion of $8.5 million related to the sale of the 1982 built vessel, the
Highland Fortress, which will leave both the North Sea and oil service sector.
To replace this vessel, the Company has entered into an agreement with the
1
<PAGE 2>
Aker Brattvaag Group, Norway for a newbuild vessel similar to the 1998 built
vessel, the Highland Rover, at a contract price below $15.0 million.
GulfMark will hold a conference call to discuss the second quarter earnings
with analysts, investors and other interested parties at 9:00 A.M. CDT/10:00
A.M. EDT on Wednesday, August 9, 2000. Those interested in participating in
the conference call should call 888/273-9890 (612/332-0725, if outside the
U.S. and Canada) a few 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 531479.
Contact: Edward A. Guthrie, Executive Vice President
(713) 963-9522
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.
<PAGE>3
OPERATING RESULTS
(in 000's except per share amounts)
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
June 30, June 30,
------------------ ------------------
2000 1999 2000 1999
-------- -------- -------- --------
<S> <C> <C> <C> <C>
REVENUES............................. $ 20,039 $ 19,622 $ 34,452 $ 40,749
Direct operating expenses............ 8,653 8,690 16,624 16,881
Bareboat charter expense............. 1,675 1,764 3,431 3,519
Depreciation and amortization........ 3,391 3,229 6,484 6,349
General and administrative expenses.. 1,503 1,470 3,110 3,113
-------- -------- -------- --------
OPERATING INCOME................... 4,817 4,469 4,803 10,887
Interest expense, net of interest
income............................. (2,801) (2,286) (5,615) (4,458)
Loss from unconsolidated venture..... (152) (36) (511) (36)
Other, net........................... 78 186 147 78
-------- -------- -------- --------
Income (loss) before income taxes.... 1,942 2,333 (1,176) 6,471
Income tax (provision) benefit....... (529) (530) 437 (1,760)
-------- -------- -------- --------
Net income (loss).................. $ 1,413 $ 1,803 $ (739) $ 4,711
======== ======== ======== ========
BASIC EARNINGS PER SHARE:
NET INCOME (LOSS).................. $ 0.17 $ 0.22 $ (0.09) $ 0.58
======== ======== ======== ========
DILUTED EARNINGS PER SHARE:
NET INCOME (LOSS).................. $ 0.17 $ 0.22 $ (0.09) $ 0.57
======== ======== ======== ========
Weighted average common shares....... 8,161 8,129 8,150 8,126
Weighted average diluted common
shares............................. 8,317 8,268 8,150 8,260
RATES PER DAY WORKED
North Sea based fleet.............. $ 9,507 $ 10,139 $ 8,638 $ 10,449
Southeast Asia based fleet......... 3,870 4,799 3,866 4,841
Brazil based fleet................. 8,600 8,033 7,869 8,740
OVERALL UTILIZATION %
North Sea based fleet.............. 92.8% 93.7% 85.6% 94.4%
Southeast Asia based fleet......... 62.7% 58.0% 58.2% 60.8%
Brazil based fleet................. 97.1% 89.9% 95.9% 94.3%
AVERAGE OWNED OR CHARTERED
North Sea based fleet.............. 19.0 18.0 19.0 18.0
Southeast Asia based fleet......... 12.0 11.0 12.0 11.0
Brazil based fleet................. 3.0 2.0 3.0 2.0
-------- -------- -------- --------
Total........................... 34.0 31.0 34.0 31.0
======== ======== ======== ========
</TABLE>
3
