Core Insights - SEACOR Marine Holdings Inc. reported a net income of $9.0 million for Q3 2025, a significant recovery from a net loss of $16.3 million in Q3 2024 and a loss of $6.7 million in Q2 2025 [3][2][8] Financial Performance - Consolidated operating revenues for Q3 2025 were $59.2 million, down 14.1% from $68.9 million in Q3 2024, but slightly up from $60.8 million in Q2 2025 [2][8] - Operating income for Q3 2025 was $18.1 million, compared to an operating loss of $6.5 million in Q3 2024 and an operating income of $6.1 million in Q2 2025 [2][8] - Direct vessel profit (DVP) for Q3 2025 was $11.5 million, compared to $16.0 million in Q3 2024 and $11.3 million in Q2 2025 [2][8] Operational Highlights - The average day rate for the fleet was $19,490, a 3.2% increase from Q3 2024 but a 1.2% decrease from Q2 2025 [8] - Fleet utilization was 66%, down from 67% in Q3 2024 and 68% in Q2 2025 [8] - The platform supply vessel (PSV) fleet achieved a DVP margin of 24.8%, despite soft market conditions in the North Sea [7][8] Strategic Developments - The company completed the sale of two 335' class liftboats for total proceeds of $76.0 million, resulting in a gain of $30.5 million [8][4] - SEACOR Marine is focusing on a strategic shift away from high volatility markets and plans to utilize improved liquidity to fund a newbuild PSV program [8][9] Segment Performance - The fast supply vessel (FSV) fleet saw improved utilization and dayrate performance, with two of three previously cold-stacked FSVs reactivated [6][8] - Multi-year contracts were awarded in Brazil for two large hybrid-powered PSVs, set to commence in Q1 2026, which will reduce the company's presence in the North Sea [7][8]

Fleet Operations - As of September 30, 2025, the Company operated a fleet of 45 owned support vessels, primarily serving major oil and gas companies and offshore wind farm operators [82]. - As of September 30, 2025, only one of the 45 vessels was cold-stacked, indicating a strategy to manage costs during periods of low utilization [91]. - The fleet count as of September 30, 2025, included 21 FSV, 19 PSV, and 5 Liftboats, totaling 45 vessels [112]. Financial Performance - For the three months ended September 30, 2025, operating revenues were $59,194, a decrease of 13.5% compared to $68,916 in the same period of 2024 [102]. - Operating income for the three months ended September 30, 2025, was $18,066, compared to a loss of $6,481 in the same period of 2024, marking a significant turnaround [102]. - Net income for the three months ended September 30, 2025, was $8,994, compared to a loss of $16,346 in the same period of 2024 [102]. - For the nine months ended September 30, 2025, total operating revenues reached $175.503 million, with time charter revenues contributing $165.564 million [104]. - The Company reported cash flows used in operating activities of $24.2 million for the nine months ended September 30, 2025, compared to $18.8 million for the same period in 2024, reflecting an increase of $5.4 million [150]. Revenue and Utilization - Average rates per day for time charters increased to $19,490 in 2025 from $18,879 in 2024, reflecting a growth of 3.2% [102]. - Fleet utilization decreased slightly to 66% in 2025 from 67% in 2024 [102]. - Average rates per day for time charters were $19,358, with fleet utilization at 65% across all regions [104]. - The average daily rates for the nine months ended September 30, 2025, were $13,758 for AHTS, $21,117 for FSV, and $34,601 for PSV [110]. Asset Management - The Company completed the sale of two liftboats for total proceeds of $76.0 million, resulting in a net cash gain of $30.5 million [93]. - The Company has exited the AHTS asset class, selling two AHTS for total proceeds of $22.5 million, which partially funded newbuild contracts [96]. - The historical cost of property and equipment as of September 30, 2025, was $797,381, with accumulated depreciation of $344,899 [110]. Debt and Liquidity - The 2024 SMFH Credit Facility, totaling $391.0 million, was established to refinance existing debt and support new vessel construction [98][99]. - The Company had outstanding debt of $341.9 million as of September 30, 2025, with scheduled long-term debt maturities totaling $346.4 million [148]. - The Company made scheduled payments on long-term debt and other obligations totaling $20.0 million during the nine months ended September 30, 2025 [153]. - The Company has $25.0 million in remaining sales capacity under the ATM Program to support liquidity needs [153]. Cost Management - Personnel costs for the three months ended September 30, 2025, were $17,616, a decrease from $21,940 in 2024, representing a reduction of 19.8% [102]. - Direct operating expenses for the nine months ended September 30, 2025, were $14.6 million lower than the prior year, mainly due to vessel repositioning [134]. - Direct operating expenses increased by $0.8 million in the Current Year Quarter, with $2.9 million higher expenses for the Regional Core Fleet due to timing of drydocking and repair expenditures [121]. Market Trends - The Company has noted macro drivers such as underspending by oil producers and improved extraction technologies that may support future demand [89]. - The Company continues to evaluate possible acquisitions and dispositions of certain businesses and assets to enhance its market position [153].

Financial Performance - Consolidated operating revenues for Q3 2025 were $59.2 million, a 14.1% decrease from $68.9 million in Q3 2024 and a 2.7% decrease from $60.8 million in Q2 2025[2][8] - Net income for Q3 2025 was $9.0 million ($0.35 earnings per share), compared to a net loss of $16.3 million ($0.59 loss per share) in Q3 2024 and a net loss of $6.7 million ($0.26 loss per share) in Q2 2025[3][16] - Operating revenues for the three months ended September 30, 2025, totaled $59.194 million, a decrease from $60.810 million in the previous quarter[18] - Net income for the quarter was $8.994 million, a significant recovery from a net loss of $6.727 million in the previous quarter[18] - Basic net earnings per share were $0.35, compared to a loss of $0.26 per share in the previous quarter[18] Vessel Performance - Direct vessel profit (DVP) for Q3 2025 was $11.5 million, down from $16.0 million in Q3 2024 and up from $11.3 million in Q2 2025[2][8] - Average day rates were $19,490, reflecting a 3.2% increase from Q3 2024 but a 1.2% decrease from Q2 2025[8] - Utilization rate was 66%, a decrease from 67% in Q3 2024 and 68% in Q2 2025[8] - Direct vessel profit for the quarter was $11.510 million, compared to $11.317 million in the previous quarter, indicating a slight increase of 1.7%[18] - Gains on asset dispositions and impairments increased to $30.230 million from $19.163 million in the previous quarter, marking a substantial rise[18] Regional Performance - Operating revenues for the Middle East and Asia segment totaled $12,925, a slight increase from $12,797 in the previous quarter, reflecting a growth of 1%[25] - Direct vessel profit for the Middle East and Asia segment showed a loss of $847, compared to a loss of $1,290 in the previous quarter, improving by 34.4%[25] - In Latin America, average rates per day worked rose to $25,541 in Q3 2025 from $23,764 in Q2 2025, marking an increase of 7.5%[25] - Fleet utilization in Latin America improved to 68% in Q3 2025 from 66% in Q2 2025, an increase of 3%[25] - Operating revenues for Latin America reached $12,047, up from $9,292 in the previous quarter, representing a significant increase of 29.9%[25] Cost and Expenses - Personnel costs for the quarter were $17.616 million, down from $18.969 million in the previous quarter, reflecting a decrease of approximately 7.1%[18] - Total direct costs and expenses for PSV were $19,451,000 in Q3 2025, slightly up from $19,322,000 in Q2 2025[31] - Total direct costs and expenses for liftboats were $12,294,000 in Q3 2025, down from $17,472,000 in Q2 2025, a decrease of 29.8%[34] Asset and Liquidity Management - Total assets as of September 30, 2025, amounted to $692.5 million, a slight increase from $680.0 million in the previous quarter[36] - Cash and cash equivalents increased to $108.2 million from $51.6 million at the end of the previous quarter, reflecting a net change of $56.7 million[38] - Total current assets rose to $194.3 million, compared to $133.0 million in the previous quarter, indicating a 46% increase[36] - The company reported a net cash used in operating activities of $10.7 million for the quarter, an increase from $2.1 million used in the prior quarter[38] - Proceeds from the disposition of property and equipment were $76.1 million, significantly higher than $31.6 million in the previous quarter[38] Fleet and Vessels - The company owned a total of 45 vessels as of September 30, 2025, unchanged from the previous reporting period[40] - Long-term debt remained stable at approximately $311.9 million, compared to $310.9 million in the previous quarter[36] - The accumulated deficit decreased to $193.8 million from $202.8 million, indicating an improvement in retained earnings[36]

Core Viewpoint - SEACOR Marine Holdings Inc. has announced the sale of two liftboats for a total of $76.0 million, which is expected to enhance its financial position and reduce exposure to volatile markets [1][2][3] Group 1: Transaction Details - The company has entered into definitive agreements for the sale of two 335-foot class liftboats to JAD Construction Limited for total gross proceeds of $76.0 million in cash [1] - The estimated gain from this transaction is $30.5 million, with net proceeds being unencumbered [1] - The transaction is expected to close in the third quarter of 2025, pending customary closing conditions and regulatory approvals [1] Group 2: Strategic Implications - This sale is part of the company's strategic shift away from high volatility markets, allowing for capital redeployment into more attractive assets [2] - The proceeds from the sale will enable the company to explore consolidation opportunities and improve its cost structure and balance sheet [2] - The sale reduces the company's exposure to offshore wind and decommissioning markets, which have faced prolonged periods of softer demand [3] Group 3: Operational Impact - The transaction is expected to improve overall fleet utilization and eliminate anticipated costs and downtime associated with repairs scheduled for one of the vessels [3] - The company maintains one of the youngest and highest specification fleets in the industry, positioning it well for future opportunities in dynamic offshore markets [4]

Core Insights - Seacor Marine reported Q2 2025 GAAP revenue of $60.8 million, missing analyst expectations by 12.3%, while GAAP loss per share was $(0.26), slightly better than the anticipated $(0.27) [1][5] - The company experienced a 13.0% decline in GAAP operating revenue compared to Q2 2024, with direct vessel profit margins pressured by high repair and drydocking expenses [1][5] Financial Performance - GAAP revenue for Q2 2025 was $60.8 million, down from $69.9 million in Q2 2024, reflecting a 13.0% year-over-year decrease [2] - Direct vessel profit fell to $11.3 million, a 44.3% decline from $20.3 million in Q2 2024, with margins decreasing to 18.6% from 29.1% [2][5] - Operating income improved to $6.1 million from a loss of $(3.9) million in Q2 2024, influenced by nonrecurring gains from asset sales [5] Operational Overview - Seacor Marine operates a diverse fleet of offshore support vessels, including PSVs, FSVs, and liftboats, focusing on transporting equipment and personnel to offshore energy facilities [3] - The company has prioritized fleet modernization, asset rotation, and capital structure simplification, involving the sale of older vessels and investment in newbuilds with advanced technologies [4] Segment Performance - The PSV fleet achieved a 30.3% direct vessel profit margin, benefiting from hybrid power management upgrades, while other vessel classes faced downtime and rising operating expenses [6] - In Africa and Europe, non-GAAP direct vessel profit reached $9.3 million with fleet utilization at 77%, while the U.S. segment faced higher drydocking expenses [7] Key Events - The sale of two PSVs and one FSV for $33.4 million generated a $19.1 million gain, contributing to the bottom line and enabling share repurchases [8] - The company ended the quarter with negative operating cash flow of $2.08 million, indicating underlying operational pressures [8] Future Outlook - Management did not provide quantitative guidance for the next quarter but emphasized continued focus on fleet modernization and environmental upgrades [10] - The company remains optimistic about new PSV deliveries in 2026 and 2027 [10]

Group 1 - The focus has shifted towards offshore drilling, supply industry, and shipping, including tankers, containers, and dry bulk [1] - The fuel cell industry is being monitored as it is still in its early stages of development [1] Group 2 - The individual has extensive experience in auditing and trading, having navigated significant market events such as the dotcom bubble and the subprime crisis [2] - The research provided aims to maintain high quality despite language barriers [2]

Company Performance - Seacor Marine reported a quarterly loss of $0.26 per share, slightly better than the Zacks Consensus Estimate of a loss of $0.27, and an improvement from a loss of $0.45 per share a year ago, resulting in an earnings surprise of +3.70% [1] - The company posted revenues of $60.81 million for the quarter ended June 2025, missing the Zacks Consensus Estimate by 12.31%, and down from $69.87 million in the same quarter last year [2] - Over the last four quarters, Seacor Marine has surpassed consensus EPS estimates three times, but has only topped consensus revenue estimates once [2] Stock Performance - Seacor Marine shares have declined approximately 18.5% since the beginning of the year, contrasting with the S&P 500's gain of 8.3% [3] - The current consensus EPS estimate for the upcoming quarter is -$0.41 on revenues of $67.17 million, and for the current fiscal year, it is -$1.76 on revenues of $255.97 million [7] Industry Outlook - The Transportation - Shipping industry, to which Seacor Marine belongs, is currently ranked in the top 37% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact Seacor Marine's stock performance [5]

Core Viewpoint - SEACOR Marine Holdings Inc. reported its second quarter results for 2025, showing improvements in operating revenues and direct vessel profit compared to the previous year and the first quarter of 2025, despite a net loss for the quarter [2][3]. Financial Performance - Consolidated operating revenues for Q2 2025 were $60.8 million, a decrease of 13.0% from $69.9 million in Q2 2024, but an increase of 9.6% from $55.5 million in Q1 2025 [2][7]. - Operating income was $6.1 million in Q2 2025, compared to an operating loss of $3.9 million in Q2 2024 and an operating loss of $5.3 million in Q1 2025 [2][12]. - Direct vessel profit (DVP) for Q2 2025 was $11.3 million, down from $20.3 million in Q2 2024 and $13.6 million in Q1 2025 [2][12]. Net Loss and Share Performance - The net loss for Q2 2025 was $6.7 million, or $0.26 loss per share, an improvement from a net loss of $12.5 million ($0.45 loss per share) in Q2 2024 and a net loss of $15.5 million ($0.56 loss per share) in Q1 2025 [3][12]. - The company repurchased shares and warrants representing 9.1% of outstanding shares for approximately $12.9 million [7]. Fleet and Market Performance - The PSV fleet achieved a 30.3% DVP margin, with improved average rates and utilization, despite two premium PSVs being out of service for repairs [4]. - In the Middle East, ongoing repairs to a premium liftboat affected results, but market activity remains healthy [5]. - The U.S. market saw improvements driven by higher day rates and utilization for liftboats, although offset by increased drydocking expenses [6]. Future Outlook - The company plans to adapt and reposition into markets with lower volatility and better returns ahead of new PSV deliveries scheduled for late 2026 and early 2027 [8].

[Financial Highlights and CEO Commentary](index=1&type=section&id=Financial%20Highlights%20and%20CEO%20Commentary) [Q2 2025 Overall Performance](index=1&type=section&id=Q2%202025%20Overall%20Performance) SEACOR Marine reported improved Q2 2025 operating income and narrowed net loss, significantly aided by asset sales gains Q2 2025 Key Financial Metrics Comparison | Metric | Q2 2025 ($) | Q2 2024 ($) | Q1 2025 ($) | | :--- | :--- | :--- | :--- | | Operating Revenues | $60.8M | $69.9M | $55.5M | | Operating Income (Loss) | $6.1M | $(3.9)M | $(5.3)M | | Direct Vessel Profit (DVP) | $11.3M | $20.3M | $13.6M | | Net Loss | $(6.7)M | $(12.5)M | $(15.5)M | | Loss Per Share | $(0.26) | $(0.45) | $(0.56) | Q2 2025 Key Operational Metrics | Metric | Q2 2025 | YoY Change | QoQ Change | | :--- | :--- | :--- | :--- | | Average Day Rates ($) | $19,731 | +3.1% | +4.8% | | Fleet Utilization | 68% | -1 ppt | +8 ppts | | DVP Margin | 18.6% | -10.5 ppts | -5.9 ppts | - During Q2 2025, the company sold two Platform Supply Vessels (PSVs) and one Fast Supply Vessel (FSV) for total proceeds of **$33.4 million**, realizing a gain of **$19.1 million**[7](index=7&type=chunk) [CEO Commentary and Strategy](index=1&type=section&id=CEO%20Commentary%20and%20Strategy) CEO commentary highlights asset rotation, fleet repositioning, and capital structure simplification, with a focus on future market adaptation - The company is actively implementing an asset rotation and repositioning strategy to optimize its fleet[4](index=4&type=chunk) - The PSV fleet showed strong improvement in average rates and utilization, with significant contributions from Latin America and West Africa[5](index=5&type=chunk) - Middle East results were negatively impacted by ongoing repairs to a premium liftboat, which is expected back in service in September 2025[6](index=6&type=chunk) - On April 4, 2025, the company repurchased shares and warrants from Carlyle for approximately **$12.9 million**, simplifying the capital structure[9](index=9&type=chunk) - The company plans to redeploy three laid-up FSVs from the U.S. to international markets in Q3 and Q4 2025[8](index=8&type=chunk) [Consolidated Financial Statements](index=4&type=section&id=Consolidated%20Financial%20Statements) [Statements of Income (Loss)](index=4&type=section&id=Statements%20of%20Income%20%28Loss%29) Q2 2025 saw a reversal to operating income and a narrowed net loss, primarily driven by a significant gain on asset dispositions Condensed Income Statement (Q2 2025 vs. Q2 2024, in thousands) | Account | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Operating Revenues | $60,810 | $69,867 | | Total Costs and Expenses | $73,906 | $73,834 | | Gains on Asset Dispositions | $19,163 | $37 | | **Operating Income (Loss)** | **$6,067** | **$(3,930)** | | Interest Expense | $(8,844) | $(10,190) | | **Net Loss** | **$(6,727)** | **$(12,483)** | Quarterly Time Charter Statistics | Metric | Q2 2025 | Q1 2025 | Q2 2024 | | :--- | :--- | :--- | :--- | | Average Rates Per Day ($) | $19,731 | $18,825 | $19,141 | | Fleet Utilization | 68% | 60% | 69% | [Balance Sheets](index=11&type=section&id=Balance%20Sheets) As of June 30, 2025, total assets decreased to $680.0 million, with total equity declining to $267.8 million due to accumulated deficit Condensed Balance Sheet (in thousands) | Account | Jun. 30, 2025 | Jun. 30, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $34,381 | $40,605 | | Net property and equipment | $541,915 | $583,162 | | **Total Assets** | **$680,030** | **$721,566** | | Total current liabilities | $81,473 | $71,077 | | Long-term debt | $310,980 | $277,740 | | **Total Liabilities** | **$412,234** | **$383,628** | | **Total Equity** | **$267,796** | **$337,938** | [Statements of Cash Flows](index=12&type=section&id=Statements%20of%20Cash%20Flows) Q2 2025 cash flows showed an operating outflow, significant investing inflow from asset sales, and financing outflow for share repurchases Condensed Statement of Cash Flows (Q2 2025, in thousands) | Cash Flow Category | Amount | | :--- | :--- | | Net cash used in operating activities | $(2,077) | | Net cash provided by investing activities | $21,379 | | Net cash used in financing activities | $(13,175) | | **Net Change in Cash** | **$6,127** | - Cash from investing activities was primarily driven by **$31.6 million** in proceeds from the disposition of property and equipment[36](index=36&type=chunk) - Cash used in financing activities included payments of **$7.1 million** for stock repurchase and **$6.7 million** for warrant repurchase[36](index=36&type=chunk) [Segment and Vessel Performance](index=6&type=section&id=Segment%20and%20Vessel%20Performance) [Performance by Geographic Segment](index=6&type=section&id=Performance%20by%20Geographic%20Segment) Africa & Europe and Latin America segments drove Q2 2025 DVP, while U.S. and Middle East & Asia segments incurred losses due to high costs Direct Vessel Profit (DVP) by Segment - Q2 2025 (in thousands) | Segment | Operating Revenues | Direct Vessel Profit (Loss) | | :--- | :--- | :--- | | United States | $13,380 | $(1,816) | | Africa and Europe | $25,341 | $9,309 | | Middle East and Asia | $12,797 | $(1,290) | | Latin America | $9,292 | $5,114 | - The U.S. segment's loss was driven by high operating costs, including **$3.7 million** in drydocking expenses[20](index=20&type=chunk) - The Middle East & Asia segment's loss was primarily due to a surge in repairs and maintenance costs to **$6.3 million**, up from **$3.4 million** in Q2 2024[23](index=23&type=chunk) [Performance by Vessel Class](index=8&type=section&id=Performance%20by%20Vessel%20Class) PSVs and FSVs were key revenue contributors in Q2 2025, while Liftboats incurred an operating loss due to high repair costs PSV Performance - Q2 2025 | Metric | Value | | :--- | :--- | | Average Rates Per Day ($) | $22,231 | | Fleet Utilization | 68% | | Operating Revenues ($M) | $27.7M | | Direct Operating Costs ($M) | $19.3M | FSV Performance - Q2 2025 | Metric | Value | | :--- | :--- | | Average Rates Per Day ($) | $13,468 | | Fleet Utilization | 67% | | Operating Revenues ($M) | $18.1M | | Direct Operating Costs ($M) | $12.3M | Liftboat Performance - Q2 2025 | Metric | Value | | :--- | :--- | | Average Rates Per Day ($) | $31,904 | | Fleet Utilization | 67% | | Operating Revenues ($M) | $14.9M | | Direct Operating Costs ($M) | $17.5M | [Fleet Information](index=13&type=section&id=Fleet%20Information) [Fleet Count](index=13&type=section&id=Fleet%20Count) The total fleet decreased to 49 vessels by June 30, 2025, reflecting strategic asset sales during the first half of the year Fleet Count Comparison | Vessel Type | June 30, 2025 | Dec. 31, 2024 | | :--- | :--- | :--- | | AHTS | 1 | 2 | | FSV | 22 | 23 | | PSV | 19 | 21 | | Liftboats | 7 | 8 | | **Total** | **49** | **54** |

[Part I. Financial Information](index=3&type=section&id=Part%20I.%20Financial%20Information) [Financial Statements (Unaudited)](index=3&type=section&id=Item%201.%20Financial%20Statements) Net loss improved to $22.2 million in H1 2025, driven by a $25.0 million gain on asset dispositions, offsetting lower revenues and negative operating cash flow [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Balance Sheet Summary (in thousands) | Account | June 30, 2025 | December 31, 2024 | Change | | :--- | :--- | :--- | :--- | | **Assets** | | | | | Cash and cash equivalents | $34,381 | $59,491 | ($25,110) | | Assets held for sale | $0 | $10,943 | ($10,943) | | Net property and equipment | $541,915 | $544,870 | ($2,955) | | **Total Assets** | **$680,030** | **$727,111** | **($47,081)** | | **Liabilities & Equity** | | | | | Current portion of long-term debt | $30,000 | $27,500 | $2,500 | | Long-term debt | $310,980 | $317,339 | ($6,359) | | **Total Liabilities** | **$412,234** | **$428,789** | **($16,555)** | | **Total Equity** | **$267,796** | **$298,322** | **($30,526)** | [Condensed Consolidated Statements of Income (Loss)](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income%20%28Loss%29) Income Statement Summary (in thousands, except EPS) | Metric | Q2 2025 | Q2 2024 | Six Months 2025 | Six Months 2024 | | :--- | :--- | :--- | :--- | :--- | | Operating Revenues | $60,810 | $69,867 | $116,309 | $132,637 | | Gains on Asset Dispositions | $19,163 | $37 | $24,972 | $36 | | Operating Income (Loss) | $6,067 | ($3,930) | $814 | ($14,540) | | Net Loss | ($6,727) | ($12,483) | ($22,216) | ($35,552) | | Net Loss Per Share (Basic) | ($0.26) | ($0.45) | ($0.83) | ($1.29) | - The company shifted from an operating loss to operating income year-over-year for both the three and six-month periods, primarily due to significant gains on asset dispositions totaling **$19.2 million in Q2 2025** and **$25.0 million in H1 2025**[9](index=9&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Cash Flow Summary for Six Months Ended June 30 (in thousands) | Activity | 2025 | 2024 | | :--- | :--- | :--- | | Net cash used in operating activities | ($13,543) | ($19,416) | | Net cash provided by (used in) investing activities | $9,056 | ($3,988) | | Net cash used in financing activities | ($20,098) | ($17,868) | | **Net Change in Cash** | **($24,585)** | **($41,271)** | - Investing activities provided **$9.1 million** in cash, driven by **$40.1 million** in proceeds from property dispositions, which offset **$31.0 million** in equipment purchases[14](index=14&type=chunk) - Financing activities used **$20.1 million**, including **$12.5 million** in debt payments and **$13.8 million** for stock and warrant repurchases[14](index=14&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) - During the first six months of 2025, the company sold one fast support vessel (FSV), two platform supply vessels (PSV), one liftboat, and other equipment for net cash proceeds of **$40.1 million**, recognizing a gain of **$25.0 million**[46](index=46&type=chunk) - On April 4, 2025, the company repurchased **1,355,761 shares** of its common stock and all outstanding warrants from Carlyle-affiliated funds for an aggregate price of approximately **$12.9 million**[61](index=61&type=chunk) - As of June 30, 2025, the company had unfunded capital commitments of **$65.1 million**, primarily for the construction of two PSVs (**$59.3 million**), partially funded by restricted cash and a dedicated credit facility tranche[62](index=62&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=27&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Operating revenue decreased by 12.3% in H1 2025, but the company achieved operating income due to a $25.0 million gain on asset sales, while managing liquidity and capital commitments [Recent Developments](index=29&type=section&id=Recent%20Developments) - Completed a Securities Repurchase from Carlyle affiliates for approximately **$12.9 million**, buying back approximately **1.36 million shares** and approximately **1.28 million warrants**, eliminating all outstanding warrants[86](index=86&type=chunk) - Sold two PSVs for **$28.8 million** (gain of **$16.1 million**) and one FSV for **$4.6 million** (gain of **$3.0 million**) in April 2025, with proceeds used for securities repurchase and new vessel construction[87](index=87&type=chunk)[88](index=88&type=chunk) - Entered into a new **$391.0 million** credit facility in November 2024 to refinance existing debt and secure funding for two newbuild PSVs, expected to be delivered in Q4 2026 and Q1 2027[90](index=90&type=chunk)[91](index=91&type=chunk)[92](index=92&type=chunk) [Consolidated Results of Operations](index=32&type=section&id=Consolidated%20Results%20of%20Operations) Consolidated Operations Comparison (in thousands) | Metric | Six Months 2025 | Six Months 2024 | Change | | :--- | :--- | :--- | :--- | | Operating Revenues | $116,309 | $132,637 | -12.3% | | Operating Expenses | $91,421 | $97,619 | -6.3% | | Gains on Asset Dispositions | $24,972 | $36 | +69,267% | | Operating Income (Loss) | $814 | ($14,540) | Improved by $15.4M | | Net Loss | ($22,216) | ($35,552) | Improved by $13.3M | - Overall fleet utilization decreased slightly to **64%** in H1 2025 from **65%** in H1 2024, while average day rates increased to **$19,291** from **$19,094**[95](index=95&type=chunk) [Segment Performance Analysis](index=40&type=section&id=Segment%20Performance%20Analysis) - **United States:** Direct vessel loss narrowed to **($5.7 million)** in H1 2025 from **($6.7 million)** in H1 2024, despite lower utilization (**36% vs 32%**), due to cost control and fleet composition changes[106](index=106&type=chunk)[109](index=109&type=chunk) - **Africa and Europe:** Direct vessel profit decreased to **$15.6 million** in H1 2025 from **$20.4 million** in H1 2024, primarily due to lower utilization and timing of repair expenditures, despite higher average day rates[111](index=111&type=chunk)[114](index=114&type=chunk)[115](index=115&type=chunk) - **Middle East and Asia:** Direct vessel profit fell to **$3.8 million** in H1 2025 from **$8.6 million** in H1 2024, driven by lower charter revenues from asset dispositions and lower day rates for the core fleet[117](index=117&type=chunk)[120](index=120&type=chunk) - **Latin America:** Direct vessel profit decreased to **$11.2 million** in H1 2025 from **$12.7 million** in H1 2024, as vessel repositioning led to significantly lower revenues, partially offset by higher day rates and utilization for the remaining core fleet[122](index=122&type=chunk)[125](index=125&type=chunk) [Liquidity and Capital Resources](index=47&type=section&id=Liquidity%20and%20Capital%20Resources) - As of June 30, 2025, the company held **$51.6 million** in cash, cash equivalents, and restricted cash[139](index=139&type=chunk) - The company has unfunded capital commitments of **$65.1 million** as of June 30, 2025, mainly for two new PSVs, with funding sources including restricted cash (**$16.5 million**) and a dedicated credit facility tranche (**$32.8 million** remaining)[139](index=139&type=chunk)[92](index=92&type=chunk) Contractual Long-Term Debt Maturities (in thousands) | Period | Amount | | :--- | :--- | | Remainder 2025 | $15,000 | | 2026 | $30,000 | | 2027 | $30,677 | | 2028 | $30,621 | | 2029 | $239,402 | | **Total** | **$345,700** | [Quantitative and Qualitative Disclosures About Market Risk](index=52&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company states there has been no material change in its exposure to market risk during the six months ended June 30, 2025 - There has been no material change in the Company's exposure to market risk during the six months ended June 30, 2025[149](index=149&type=chunk) [Controls and Procedures](index=52&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the CEO and CFO, evaluated the company's disclosure controls and procedures and concluded they were effective as of June 30, 2025 - The company's principal executive officer and principal financial officer concluded that disclosure controls and procedures were effective as of June 30, 2025[150](index=150&type=chunk) - No changes in internal control over financial reporting occurred during the quarter that have materially affected, or are reasonably likely to materially affect, the company's internal control[152](index=152&type=chunk) [Part II. Other Information](index=53&type=section&id=Part%20II.%20Other%20Information) [Legal Proceedings](index=53&type=section&id=Item%201.%20Legal%20Proceedings) The company is appealing a Brazilian tax dispute for R$26.7 million (approx. $4.9 million USD), with other litigation not expected to be material - A Brazilian subsidiary is appealing a tax-deficiency notice from 2015 related to contributions from 2011-2012, with a potential levy of **R$26.7 million** (approximately **$4.9 million USD**)[63](index=63&type=chunk) [Risk Factors](index=53&type=section&id=Item%201A.%20Risk%20Factors) The company reports no material changes to its risk factors from those disclosed in its 2024 Annual Report on Form 10-K - There have been no material changes in the Company's risk factors during the current quarter from those disclosed in the 2024 Annual Report[155](index=155&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=53&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company reported no unregistered equity sales in Q2 2025, but repurchased 2,011 shares from directors for tax withholding - The company did not have any unregistered sales of equity securities in Q2 2025[156](index=156&type=chunk) - During Q2 2025, the company repurchased **2,011 shares** from directors to cover tax withholding obligations on vested restricted stock awards, at an aggregate price of **$11,523**[156](index=156&type=chunk) [Other Items (3, 4, 5, 6)](index=53&type=section&id=Other%20Items%20%283%2C%204%2C%205%2C%206%29) The company reported no defaults on senior securities, no mine safety disclosures, and no new or terminated Rule 10b5-1 trading arrangements - The company reported no defaults upon senior securities (Item 3), no mine safety disclosures (Item 4), and no new or terminated Rule 10b5-1 trading arrangements by executives (Item 5)[157](index=157&type=chunk)[158](index=158&type=chunk)[159](index=159&type=chunk)