Superior Offshore International sells PSV, offers DSVFiled from Houston
4/15/2008 6:11:54 PM GMT
USA/GULF OF MEXICO: Financially troubled Superior Offshore International has closed the sale of platform support vessel (PSV) Gulf Diver V and selected onboard diving equipment to Legacy Offshore for US$4 million. Under the purchase agreement, Superior Offshore has the option to repurchase the vessel and equipment for the same price on Oct. 1, 2008. Legacy Offshore provided a deposit of US$1.8 million in late March, which Superior Offshore used to make a scheduled payment on the charter of the diving support vessel (DSV) Gulmar Condor, which Superior Offshore would not have been able to make without the deposit.
Equipment sold as part of the deal include four dive hoses, two dive ladders, three gas radios, two dive bells, one electric welder, and one generator. Gulf Diver V weighs 900 tons and is 180 feet (54.86 m) long.
The company is also amending its credit facility with JPMorgan Chase Bank, with the commitments of the lenders terminating and the principal of all loans and unpaid interest becoming due and payable on May 8, 2008. Superior Offshore has agreed to sell a Kobelco CK 1600-2 crane located at the company's fabrication facility in Amelia, Louisiana, and the 168-foot by 38-foot (51 m by 11.5 m) DSV Gulf Diver IV. Proceeds from these sales will be used for the prepayment of obligations under the credit agreement
http://www.energycurrent.com/index.php?id=4&storyid=9981 Superior Offshore Sees 3Q07 Revenues Increase
Superior Offshore International, Inc. Thursday, November 15, 2007
Superior Offshore reported revenues of $75.5 million for the third quarter of 2007, compared with revenues of $64.4 million in the third quarter of 2006. The Company reported net income of $3.6 million, or $0.14 per diluted share, in the third quarter of 2007, compared with net income of $13.7 million, or $0.92 per diluted share, in the third quarter of 2006. Included in net income for the third quarter of 2007 were charges totaling $0.9 million, or $0.03 per share, related to the sale of the Belle Chasse fabrication facility and Sarbanes-Oxley implementation.
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Adjusted EBITDA, defined as EBITDA (earnings before interest expense net of capitalized interest, income taxes, depreciation and amortization and loss on extinguishment of debt), which is a non-GAAP financial measure, plus stock-based compensation was $11.1 million in the third quarter of 2007, compared with $22.8 million in the third quarter of 2006. A reconciliation of Adjusted EBITDA to the Company's net income is found at the end of this news release.
Third quarter 2007 revenues were significantly enhanced by the ongoing BP Trinidad project but were negatively impacted by the dry-dockings of the Superior Endeavour and Gulmar Falcon. Both vessels have returned to service and are currently on hire, although neither generated any revenue in the third quarter of 2007. Four-point surface diving vessel utilization and dayrates, along with "call-out" emergency response diving services, were significantly lower in the third quarter of 2007, compared to the same period in 2006, as demand for surface diving support in the Gulf of Mexico remained soft. The dry-dockings of the two vessels, and the lower four-point and call-out diving services demand, significantly reduced third quarter 2007 Adjusted EBITDA compared to the third quarter of 2006.
James J. Mermis, Superior Offshore's president and chief executive officer, stated, "Third quarter 2007 results reflect the Company's continued progress in transforming Superior Offshore into an international subsea construction and commercial diving service company. Approximately 80 % of revenues for the third quarter came from outside the Gulf of Mexico.
"During the third quarter of 2007, we realized improved vessel utilization as compared with the first half of the year. All of our dynamically positioned vessels are currently under hire, except for the Toisa Puma, which is in dry dock until early December 2007. Three of our vessels are working on our BP Trinidad project -- the largest project in company history. We expect to keep some of our assets in Trinidad after the BP project is completed around the end of the year, and we have been awarded a project with another E&P company when assets become available. We have established an office in Trinidad to pursue additional work opportunities in the region.
"Our transformation was further accelerated with our recently announced acquisition of Ocean Flow International, LLC, a subsea engineering and project management firm, which is expected to close by the end of November. The opening of our Dubai office and the addition of Ocean Flow will enable us to focus on complementary services and to offer a broader range of services to a broader range of customers, allowing us to compete for larger-scale projects with longer contract terms and higher margins.
"Looking at the fourth quarter of 2007, we expect revenues to benefit from the Superior Endeavor and Gulmar Falcon returning to work, and we are also refocusing on our 24-hour call-out diving services for emergency repair and maintenance.
"As we move into 2008, we expect the continued weakness in the shallow water Gulf of Mexico to be offset by increased international and deep water work. The four-point market is still very challenging in the Gulf, and we are looking at potential opportunities to relocate those assets to international markets where they can realize higher utilization and pricing -- and we can get enhanced marketing exposure for Superior in these markets. It is also important to note that all of our special dry-docks will be completed in 2007, and we currently have only one 30-day dry-docking scheduled for 2008," concluded Mermis.
Year-to-Date Results:
For the nine months ended September 30, 2007, Superior Offshore reported revenues of $171.7 million, compared with revenues of $174.4 million for the first nine months of 2006. The Company reported a net loss of $1.0 million, or $0.05 per share, for the first nine months of 2007, compared with net income of $37.7 million, or $2.54 per diluted share, for the same period in 2006. Included in net income for the first nine months of 2007 were charges totaling $4.4 million, or $0.22 per share, related to the early extinguishment of debt, the sale of the Belle Chasse fabrication facility and Sarbanes-Oxley implementation.
"We also believe that the dual diver accreditation of ADCI and IMCA status will give us a significant advantage as we move into the international arena," added Mermis. "We currently employ over 300 international divers who hold dual certificates, and are currently in the process of dual-certifying more than 60 U.S. divers."
2007 and 2008 Outlook:
Based on our current estimates, the timing of project work and current market conditions, the Company expects that full-year 2007 revenue will range between $265 million and $275 million.
Adjusted EBITDA for the fourth quarter of 2007 is expected to be between $16 million and $18 million. Earnings per diluted share for the fourth quarter of 2007 is expected to range from $0.12 to $0.16, which will include one-time charges related to severance costs and extinguishment of debt expected to be $0.16 to $0.20 per diluted share.
Based on our current estimates, the timing of project work and current market conditions, the Company estimates 2008 revenues will be $320 million to $350 million, which does not include any revenue from the Superior Achiever. The Achiever is expected to be placed into service in the second half of 2008.
These projections for 2007 and 2008 constitute forward-looking statements and are subject to substantial risks and uncertainties. Actual future results could differ materially from these projections as a result of a number of factors, including, but not limited to, our ability to be selected for new projects, the availability of charter vessels on suitable terms, possible shipyard delays, project delays and adverse weather conditions in the Gulf of Mexico as well as other factors described in the Company's filings with the Securities and Exchange Commission.
Fleet Update:
The Superior Endeavour, a DP II saturation Dive Support Vessel ("DSV"), returned to service in September 2007 on a saturation diving project in the U.S. Gulf of Mexico and began generating revenues in October. It has committed work through December 2007;
The Gulmar Condor, a DP II saturation DSV, experienced nearly full utilization during the third quarter of 2007 while working in Trinidad. Installation of a saturation diving system and work-class remotely operated vehicle ("ROV") was completed during the quarter. This vessel has a deepwater heave-compensated crane and is currently being bid on projects that capitalize on synergies that will be provided by Ocean Flow in the deepwater market. She will enable Superior Offshore to secure the track record needed before final commissioning of the Superior Achiever;
The Seamec III, a DP II saturation DSV, is on hire in Trinidad and experienced nearly full utilization during the third quarter. The Company is currently marketing her in Trinidad and is seeking opportunities to keep her utilized in the area after completion of the BP project;
The Adams Surveyor, a DP II vessel, is currently providing deepwater ROV services in the U.S. Gulf of Mexico. This vessel experienced strong utilization during the third quarter, and the Company is negotiating for another ROV vessel to be chartered into the fleet;
The Gulmar Falcon, a DP II DSV, returned to service in October 2007 on a saturation diving project in the U.S. Gulf of Mexico and began generating revenues in November. She has committed work in the Gulf for the remainder of this year and will come up for re-charter in April 2008. Assuming utilization of its DP assets remains strong as anticipated, Superior Offshore will negotiate a renewal of her charter;
The Toisa Puma, a DP II vessel, is in drydock and has not generated any revenues to date. Superior Offshore is currently engaged in a dispute with the vessel's owner regarding the vessel's readiness for its intended use;
The Crossmar XIV, an anchored subsea construction barge, is currently on hire in Trinidad and based on weather could see utilization there through the end of this year. The Company is working with its partner, Crossmar, to secure additional work for the vessel, either in Trinidad or the Gulf of Mexico;
The Gulf Diver III, V and VI four-point surface diving vessels continued to experience low utilization and declining dayrates due to decreasing demand in the Gulf of Mexico. Superior Offshore is exploring the possibility of moving some of these vessels to locations outside of the Gulf of Mexico. The Company is currently considering several strategic alternatives for the Gulf Diver IV, including refurbishment or sale;
Construction of the Superior Achiever, a 430-foot DP III vessel, remains on schedule, with delivery expected in the second half of 2008.
http://www.rigzone.com/news/article.asp?a_id=52921http://www.globenewswire.com/newsroom/news.html?d=131440Superior Offshore International LLC
900 S College Rd., Suite 301
70503, Lafayette
USA
www.superioroffshore.com Contact: Louis Schaefer
Phone: (337) 233-5933
Fax: (337) 233-8870
Email: Send an email
Superior Offshore International LLC, offshore services industry, specialized in commercial diving and salvage.
Superior Offshore International is celebrating 20 years in the offshore services industry. Louis Schaefer Jr., owner and president, began the company as Superior Offshore Services which specialized in commercial diving and salvage. Highly regarded in the Gulf Coast oil and gas industry, Louis recognized the need for more “diver-friendly” products and began to develop new underwater technologies and diving techniques. As a result, Louis began a sister-company, named Superior Diving Company in1995. Superior Diving Company expanded its offshore services through the acquisition of two new service vessels by purchasing the Gulf Diver III, a 165 ft, 30-ton capable, multiple-purpose vessel. In 2005, Superior Diving purchased the Superior Endeavour, a 265 ft, DPII classed ship. In December 2005, Superior Offshore Services and Superior Diving Company were unified under its new name, Superior Offshore International to better reflect both company’s expanded core capabilities and customer base. Superior Offshore International will continue to strive to become the industry leader in the worldwide energy industry. Superior Offshore International is scheduled to expand its offshore service fleet in 2006 through the acquisition of the Gulf Diver IV and the Gulf Diver V.
Superior Offshore International LLC Subsea Tags: Superior Offshore International LLC Lafayette, USA, offshore services, Superior Offshore Services, Superior Diving, Diving Services, Vessels, Navigational Aids, Construction/Fabrication
http://www.subsea.org/company/listdetails.asp?companyid=1916http://biz.yahoo.com/e/070817/deepq.pk10-q.htmlARTICLE IV
Consent
Section 4.01 Consent . The Agent and the Lenders hereby consent to (a) the sale of Gulf Diver V to Legacy Offshore, L.L.C., an Affiliate of the Borrower; provided that, (i) the Borrower provides to the Agent and each Lender a true and correct executed copy of the purchase agreement governing the sale of Gulf Diver V (the “ Gulf Diver V Purchase Agreement ”) and any other documents executed in connection with the Gulf Diver V Purchase Agreement, (ii) the terms and conditions of the Gulf Diver V Purchase Agreement are substantially similar to the draft of such agreement provided by the Borrower to the Agent, (iii) the sale of Gulf Diver V is consummated in accordance with the terms and conditions of the Gulf Diver V Purchase Agreement without waiver or amendment of any material term or condition thereof, (iv) the sale of Gulf Diver V is consummated on or before April 11, 2008, (v) the aggregate Net Proceeds received by the Borrower from the sale of Gulf Diver V are not less than $4,000,000 and on the date any portion of such Net Proceeds are received, the Borrower prepays the Obligations as set forth in Section 2.11(e) of the Credit Agreement in an aggregate amount equal to 100% of such Net Proceeds, and (vi) each of the conditions precedent to this Amendment set forth in Article V have been satisfied or waived in writing, (b) the sale of the Gulf Diver IV; provided that, (i) the Borrower provides to the Agent and each Lender a true and correct executed copy of the purchase agreement governing the sale of Gulf Diver IV (the “ Gulf Diver IV Purchase Agreement ”) and any other documents executed in connection with the Gulf Diver IV Purchase Agreement, (ii) the aggregate Net Proceeds received by the Borrower from the sale of Gulf Diver IV are not less than $100,000 and on the date any portion of such Net Proceeds are received, the Borrower prepays the Obligations as set forth in Section 2.11(e) of the Credit Agreement in an aggregate amount equal to 100% of such Net Proceeds, and (iii) each of the conditions precedent to this Amendment set forth in Article V have been satisfied or waived in writing, and (c) the sale of the Fabrication Crane; provided that, (i) the sale of the Fabrication Crane is consummated on or before April 11, 2008, (ii) the aggregate Net Proceeds received by the Borrower from the sale of the Fabrication Crane are not less than $820,000 and on the date any portion of such Net Proceeds are received, the Borrower prepays the Obligations as set forth in Section 2.11(e) of the Credit Agreement in an aggregate amount equal to 100% of such Net Proceeds and (iii) each of the conditions precedent to this Amendment set forth in Article V have been satisfied or waived in writing.
Section 4.02 Limitations on Consent . To induce the Agent and the Lenders to agree to the terms of Section 4.01, the Borrower hereby agrees that the consents set forth herein shall not be deemed a consent to the departure from or waiver of (a) Section 6.05 of the Credit Agreement for any purpose other than to permit the sale of Gulf Diver V, Gulf Diver IV and the Fabrication Crane on the terms set forth in this Amendment, (b) any other provisions, covenants or conditions in the Credit Agreement or any other Loan Document, or (c) any Default or Event of Default that otherwise may arise as a result of the sale of Gulf Diver V, Gulf Diver IV or the Fabrication Crane. The failure to comply with Section 6.05 of the Credit Agreement with respect to any other Asset Sale restricted thereby shall constitute an Event of Default.
Section 4.03 Release of Lien . The Agent and the Lenders agree that upon the satisfaction of each of the conditions set forth in Section 4.01 with respect to the sale of each of Gulf Diver V, Gulf Diver IV and the Fabrication Crane, as applicable, the Agent shall promptly deliver to Borrower, or their designee, such documents as Borrower may reasonably require to
Fifth Amendment to Credit Agreement
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