# SEACOR Marine Holdings Inc.: Form 10-Q for the period ended Jun 30, 2024

- Company: [SEACOR Marine Holdings Inc.](/companies/smhi.md) (CIK 1690334)
- Form: 10-Q
- Filed: 2024-07-31
- Accepted by EDGAR: Jul 31, 2024, 17:26 ET
- Period: 2024-06-30
- Accession: 0000950170-24-088727
- Inline XBRL: yes
- Main document: https://www.sec.gov/Archives/edgar/data/1690334/000095017024088727/smhi-20240630.htm
- All documents and exhibits: https://www.sec.gov/Archives/edgar/data/1690334/000095017024088727/

## Figures reported in this filing

Standardized XBRL line items for the period ended 2024-06-30.

| Line item | Period | Value | XBRL concept |
| --- | --- | ---: | --- |
| Revenue | 3 months, 2024-04-01 to 2024-06-30 | $69.9m | us-gaap:RevenueFromContractWithCustomerIncludingAssessedTax |
| Revenue | 6 months, 2024-01-01 to 2024-06-30 | $132.6m | us-gaap:RevenueFromContractWithCustomerIncludingAssessedTax |
| Gross profit | 3 months, 2024-04-01 to 2024-06-30 | $20.3m | us-gaap:GrossProfit |
| Gross profit | 6 months, 2024-01-01 to 2024-06-30 | $35.0m | us-gaap:GrossProfit |
| Operating income | 3 months, 2024-04-01 to 2024-06-30 | −$3.9m | us-gaap:OperatingIncomeLoss |
| Operating income | 6 months, 2024-01-01 to 2024-06-30 | −$14.5m | us-gaap:OperatingIncomeLoss |
| Interest expense | 3 months, 2024-04-01 to 2024-06-30 | $10.2m | us-gaap:InterestExpense |
| Interest expense | 6 months, 2024-01-01 to 2024-06-30 | $20.5m | us-gaap:InterestExpense |
| Income tax | 3 months, 2024-04-01 to 2024-06-30 | −$682.0k | us-gaap:IncomeTaxExpenseBenefit |
| Income tax | 6 months, 2024-01-01 to 2024-06-30 | $243.0k | us-gaap:IncomeTaxExpenseBenefit |
| Net income | 3 months, 2024-04-01 to 2024-06-30 | −$12.5m | us-gaap:ProfitLoss |
| Net income | 6 months, 2024-01-01 to 2024-06-30 | −$35.6m | us-gaap:ProfitLoss |
| Diluted EPS | 3 months, 2024-04-01 to 2024-06-30 | −$0.45 | us-gaap:EarningsPerShareDiluted |
| Diluted EPS | 6 months, 2024-01-01 to 2024-06-30 | −$1.29 | us-gaap:EarningsPerShareDiluted |
| Basic EPS | 3 months, 2024-04-01 to 2024-06-30 | −$0.45 | us-gaap:EarningsPerShareBasic |
| Basic EPS | 6 months, 2024-01-01 to 2024-06-30 | −$1.29 | us-gaap:EarningsPerShareBasic |
| Diluted shares (weighted) | 3 months, 2024-04-01 to 2024-06-30 | 27,729,033 shares | us-gaap:WeightedAverageNumberOfDilutedSharesOutstanding |
| Diluted shares (weighted) | 6 months, 2024-01-01 to 2024-06-30 | 27,536,319 shares | us-gaap:WeightedAverageNumberOfDilutedSharesOutstanding |
| Operating cash flow | 6 months, 2024-01-01 to 2024-06-30 | −$19.4m | us-gaap:NetCashProvidedByUsedInOperatingActivities |
| Capital expenditure | 6 months, 2024-01-01 to 2024-06-30 | $4.1m | us-gaap:PaymentsToAcquirePropertyPlantAndEquipment |
| Cash and equivalents | at 2024-06-30 | $40.6m | us-gaap:CashAndCashEquivalentsAtCarryingValue |
| Current assets | at 2024-06-30 | $130.1m | us-gaap:AssetsCurrent |
| Total assets | at 2024-06-30 | $721.6m | us-gaap:Assets |
| Current liabilities | at 2024-06-30 | $71.1m | us-gaap:LiabilitiesCurrent |
| Total liabilities | at 2024-06-30 | $383.6m | us-gaap:Liabilities |
| Long-term debt | at 2024-06-30 | $277.7m | us-gaap:LongTermDebtNoncurrent |
| Current portion of debt | at 2024-06-30 | $28.6m | us-gaap:LongTermDebtCurrent |
| Shareholders' equity | at 2024-06-30 | $337.6m | us-gaap:StockholdersEquity |

## Management's discussion and analysis

As filed, 58,930 characters.

*This Form 10-Q includes “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements concern management’s expectations, strategic objectives, business prospects, anticipated economic performance and financial condition and other similar matters and involve significant known and unknown risks, uncertainties and other important factors that could cause the actual results, performance or achievements of results to differ materially from any future results, performance or achievements discussed or implied by such forward-looking statements. Certain of these risks, uncertainties and other important factors are discussed in the Risk Factors and Management’s Discussion and Analysis of Financial Condition and Results of Operations of the Company’s 2023 Annual Report on Form 10-K and this Quarterly Report on Form 10-Q. However, it should be understood that it is not possible to identify or predict all such risks, uncertainties and factors, and others may arise from time to time. All of these forward-looking statements constitute the Company’s cautionary statements under the Private Securities Litigation Reform Act of 1995. The words “anticipate,” “estimate,” “expect,” “project,” “intend,” “believe,” “plan,” “target,” “forecast” and similar expressions are intended to identify forward-looking statements. Forward looking statements speak only as of the date of the document in which they are made. The Company disclaims any obligation or undertaking to provide any updates or revisions to any forward-looking statement to reflect any change in the Company’s expectations or any change in events, conditions or circumstances on which the forward-looking statement is based. It is advisable, however, to consult any further disclosures the Company makes on related subjects in its Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K filed with the United States Securities and Exchange Commission.*

*The following Management’s Discussion and Analysis (the “MD&A”) is intended to help the reader understand the Company’s financial condition and results of operations. The MD&A is provided as a supplement to and should be read in conjunction with the unaudited consolidated financial statements and notes thereto included in this Quarterly Report on Form 10-Q, as well as “Management’s Discussion and Analysis of Financial Condition and Results of Operations” contained in the 2023 Annual Report.*

### Overview

The Company provides global marine and support transportation services to offshore energy facilities worldwide. As of June 30, 2024, the Company operated a diverse fleet of 56 support vessels, of which 55 were owned or leased-in and one was managed on behalf of an unaffiliated third party. The primary users of the Company’s services are major integrated national and international oil companies, independent oil and natural gas exploration and production companies, oil field service and construction companies, as well as offshore wind farm operators and offshore wind farm installation and maintenance companies.

The Company operates and manages a diverse fleet of offshore support vessels that (i) deliver cargo and personnel to offshore installations, including offshore wind farms, (ii) assist offshore operations for production and storage facilities, (iii) provide construction, well work-over, offshore wind farm installation and decommissioning support, (iv) carry and launch equipment used underwater in drilling and well installation, maintenance, inspection and repair and (v) handle anchors and mooring equipment for offshore rigs and platforms. Additionally, the Company’s vessels provide emergency response services and accommodations for technicians and specialists.

The Company operates its fleet in four principal geographic regions: the United States (“U.S.”), primarily in the Gulf of Mexico; Africa and Europe; the Middle East and Asia; and Latin America, primarily in Mexico and Guyana. The Company’s vessels are highly mobile and regularly and routinely move between countries within a geographic region. In addition, the Company’s vessels are redeployed among geographic regions, subject to flag restrictions, as changes in market conditions dictate.

### Significant items affecting our results of operations

The number and type of vessels operated, their rates per day worked and their utilization levels are the key determinants of the Company’s operating results and cash flows. Unless a vessel is cold-stacked, there is little reduction in daily running costs for the vessels and, consequently, operating margins are most sensitive to changes in rates per day worked and utilization. The Company manages its fleet utilizing a global network of shore side support, administrative and finance personnel.

Offshore oil and natural gas market conditions are highly volatile. Oil prices experienced unprecedented volatility during 2020 due to the COVID-19 pandemic and the related effects on the global economy, with the price per barrel going negative for a short period of time. Oil prices steadily increased since the lows hit at the beginning of the COVID-19 pandemic and hit a multi-year high of $122 per barrel during 2022 primarily as a result of the conflict between Russia and Ukraine as well as the related economic sanctions and economic uncertainty but subsequently decreased to pre-conflict levels. During the six months ended June 30, 2024, WTI oil prices reached a high of $87 per barrel and a low of $70 per barrel, ending the period at $82 per barrel.

While the Company has experienced difficult market conditions over the past few years due to low and volatile oil and natural gas prices and the focus of oil and natural gas producing companies on cost and capital spending budget reductions, the increases since the lows experienced during the COVID-19 pandemic in oil and natural gas prices has led to an increase in utilization, day rates and customer inquiries about potential new charters.

The Company closely monitors the availability of vessels in the offshore support vessel market as the utilization and day rates of the Company’s fleet is dependent on the supply and demand dynamics for its vessels. For example, low oil and natural gas prices and a corresponding decline in offshore exploration may reduce demand for the Company’s vessels and in the past such declines have forced many operators in the industry to restructure, liquidate assets or consolidate with other operators. Additionally, the delivery of newly built offshore support vessels to the industry-wide fleet has in the past contributed to an oversupply of vessels in the market, thereby further decreasing the demand for the Company’s existing offshore support vessel fleet. A combination of low customer exploration and drilling activity levels, and excess supply of offshore support vessels whether from laid up fleets or newly built vessels could, in isolation or together, have a material adverse effect on the Company’s business, financial position, results of operations, cash flows and growth prospects. Alternatively, increasing activity levels and a stable supply of offshore support vessels could support higher utilization and day rates and improved financial performance of the Company’s business.

Certain macro drivers somewhat independent of oil and natural gas prices may support the Company’s business, including: (i) underspending by oil and natural gas producers over the last five to ten years leading to pent up demand for maintenance and growth capital expenditures; (ii) improved extraction technologies; and (iii) the need for offshore wind farm support as the industry grows. While the Company expects that alternative forms of energy will continue to develop and add to the world’s energy mix, especially as governments, supranational groups, institutional investors, and various other parties focus on climate change causes and concerns, the Company believes that for the foreseeable future demand for gasoline and oil will be sustained, as will demand for electricity from natural gas. Some alternative forms of energy such as offshore wind farms support some of the Company’s operations and the Company expects such support to increase as development of these forms of renewable energy expands.

The Company adheres to a strategy of cold-stacking vessels (removing from active service) during periods of weak utilization in order to reduce the daily running costs of operating the fleet, primarily personnel, repairs and maintenance costs, as well as to defer some drydocking costs into future periods. The Company considers various factors in determining which vessels to cold-stack, including upcoming dates for regulatory vessel inspections and related docking requirements. The Company may maintain class certification on certain cold-stacked vessels, thereby incurring some drydocking costs while cold-stacked. Cold-stacked vessels are returned to active service when market conditions improve, or management anticipates improvement, typically leading to increased costs for drydocking, personnel, repair and maintenance in the periods immediately preceding the vessels’ return to active service. Depending on market conditions, vessels with similar characteristics and capabilities may be rotated between active service and cold-stack. On an ongoing basis, the Company reviews its cold-stacked vessels to determine if any should be designated as retired and removed from service based on the vessel’s physical condition, the expected costs to reactivate and restore class certification, if any, and its viability to operate within current and projected market conditions. As of June 30, 2024, two of the Company’s 56 owned and leased-in vessels were cold-stacked worldwide, including one vessel classified as held for sale.

### Recent Developments

### At the Market Program

On November 1, 2023, SEACOR Marine entered into an at-the-market offering program (“ATM Program”) with B. Riley Securities, Inc., pursuant to which SEACOR Marine may sell up to $25.0 million of Common Stock. As of June 30, 2024, the remaining capacity under the ATM Program was approximately $24.9 million.

### Consolidated Results of Operations

The sections below provide an analysis of the Company’s results of operations for the three and six months (“Current Year Quarter” and “Current Year Six Months”) ended June 30, 2024 compared with the three and six months (“Prior Year Quarter” and “Prior Year Six Months”) ended June 30, 2023. Except as otherwise noted, there have been no material changes since the end of the Company’s fiscal year ended December 31, 2023, in the Company’s results of operations. For the periods indicated, the Company’s consolidated results of operations were as follows (in thousands, except statistics):

| Time Charter Statistics: | Three Months Ended June 30, 2024 |  | 2023 |  | Six Months Ended June 30, 2024 |  | 2023 |  |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| Average Rates Per Day | $19,141 |  | $15,250 |  | $19,094 |  | 14,789 |  |
| Fleet Utilization | 69% |  | 78% |  | 65% |  | 77% |  |
| Fleet Available Days | 4,994 |  | 5,096 |  | 9,999 |  | 10,167 |  |
| Operating Revenues: |  |  |  |  |  |  |  |  |
| Time charter | $65,649 | 94% | $60,804 | 89% | $124,912 | 94% | $116,219 | 89% |
| Bareboat charter | 364 | 1% | 364 | 1% | 728 | 1% | 724 | 1% |
| Other marine services | 3,854 | 5% | 7,151 | 10% | 6,997 | 5% | 12,585 | 10% |
|  | 69,867 | 100% | 68,319 | 100% | 132,637 | 100% | 129,528 | 100% |
| Costs and Expenses: |  |  |  |  |  |  |  |  |
| Operating: |  |  |  |  |  |  |  |  |
| Personnel | 21,566 | 31% | 19,944 | 29% | 43,236 | 33% | 39,747 | 31% |
| Repairs and maintenance | 10,244 | 15% | 5,793 | 9% | 20,007 | 15% | 11,804 | 9% |
| Drydocking | 6,210 | 9% | 2,256 | 3% | 12,916 | 10% | 2,269 | 2% |
| Insurance and loss reserves | 3,099 | 4% | 2,390 | 4% | 4,837 | 4% | 5,179 | 4% |
| Fuel, lubes and supplies | 3,966 | 6% | 3,638 | 5% | 8,489 | 6% | 8,457 | 6% |
| Other | 4,435 | 6% | 3,709 | 5% | 8,134 | 6% | 8,783 | 7% |
|  | 49,520 | 71% | 37,730 | 55% | 97,619 | 74% | 76,239 | 59% |
| Lease expense - operating | 486 | 1% | 698 | 1% | 967 | 1% | 1,418 | 1% |
| Administrative and general | 10,889 | 16% | 13,704 | 20% | 22,806 | 17% | 25,336 | 20% |
| Depreciation and amortization | 12,939 | 19% | 13,575 | 20% | 25,821 | 19% | 27,337 | 21% |
|  | 73,834 | 106% | 65,707 | 96% | 147,213 | 111% | 130,330 | 101% |
| Gains on Asset Dispositions and Impairments, Net | 37 | 0% | 265 | 0% | 36 | 0% | 3,864 | 3% |
| Operating (Loss) Income | (3,930) | (6)% | 2,877 | 4% | (14,540) | (11)% | 3,062 | 2% |
| Other Expense, Net | (10,201) | (15)% | (8,917) | (13)% | (20,635) | (16)% | (18,070) | (14)% |
| Loss Before Income Tax (Benefit) Expense and Equity in Earnings of 50% or Less Owned Companies | (14,131) | (20)% | (6,040) | (9)% | (35,175) | (27)% | (15,008) | (12)% |
| Income Tax (Benefit) Expense | (682) | (1)% | (1,096) | (2)% | 243 | 0% | 61 | 0% |
| Loss Before Equity in Earnings of 50% or Less Owned Companies | (13,449) | (19)% | (4,944) | (7)% | (35,418) | (27)% | (15,069) | (12)% |
| Equity in Earnings (Losses) of 50% or Less Owned Companies | 966 | 1% | 373 | 1% | (134) | (0)% | 909 | 1% |
| Net Loss | $(12,483) | (18)% | $(4,571) | (7)% | $(35,552) | (27)% | $(14,160) | (11)% |

***Direct Vessel Profit.*** Direct vessel profit (defined as operating revenues less operating expenses excluding leased-in equipment, “DVP”) is the Company’s measure of segment profitability. DVP is a critical financial measure used by the Company to analyze and compare the operating performance of its regions, without regard to financing decisions (depreciation and interest expense for owned vessels vs. lease expense for leased-in vessels). See “Note 11. Segment Information” in the unaudited consolidated financial statements included in Part I. Item 1. “Financial Statements” elsewhere in this Quarterly Report on Form 10-Q.

The following tables summarize the operating results and property and equipment for the Company’s reportable segments for the periods indicated (in thousands, except statistics):

| For the Three Months Ended June 30, 2024 Time Charter Statistics: | United States (primarily Gulf of Mexico) | Africa and Europe | Middle East and Asia | Latin America | Total |
| --- | ---: | ---: | ---: | ---: | ---: |
| Average Rates Per Day | $22,356 | $18,580 | $17,083 | $22,437 | 19,141 |
| Fleet Utilization | 37% | 74% | 82% | 71% | 69% |
| Fleet Available Days | 921 | 1,969 | 1,296 | 808 | 4,994 |
| Operating Revenues: |  |  |  |  |  |
| Time charter | $7,697 | $27,047 | $18,073 | $12,832 | $65,649 |
| Bareboat charter | — | — | — | 364 | 364 |
| Other marine services | 480 | 1,028 | 619 | 1,727 | 3,854 |
|  | 8,177 | 28,075 | 18,692 | 14,923 | 69,867 |
| Direct Costs and Expenses: |  |  |  |  |  |
| Operating: |  |  |  |  |  |
| Personnel | 6,284 | 4,969 | 6,930 | 3,383 | 21,566 |
| Repairs and maintenance | 1,879 | 3,161 | 3,443 | 1,761 | 10,244 |
| Drydocking | 2,570 | 1,226 | 707 | 1,707 | 6,210 |
| Insurance and loss reserves | 943 | 819 | 798 | 539 | 3,099 |
| Fuel, lubes and supplies | 866 | 1,170 | 1,103 | 827 | 3,966 |
| Other | 226 | 2,801 | 989 | 419 | 4,435 |
|  | 12,768 | 14,146 | 13,970 | 8,636 | 49,520 |
| **Direct Vessel (Loss) Profit** | $(4,591) | $13,929 | $4,722 | $6,287 | 20,347 |
| Other Costs and Expenses: |  |  |  |  |  |
| Lease expense | $141 | $172 | $71 | $102 | 486 |
| Administrative and general |  |  |  |  | 10,889 |
| Depreciation and amortization | 3,194 | 4,565 | 3,247 | 1,933 | 12,939 |
|  |  |  |  |  | 24,314 |
| Gains on asset dispositions and impairments, net |  |  |  |  | 37 |
| Operating loss |  |  |  |  | $(3,930) |

26

| For the Six Months Ended June 30, 2024 Time Charter Statistics: | United States (primarily Gulf of Mexico) | Africa and Europe | Middle East and Asia | Latin America | Total |
| --- | ---: | ---: | ---: | ---: | ---: |
| Average Rates Per Day | $24,779 | $16,951 | $17,012 | $25,287 | $19,094 |
| Fleet Utilization | 32% | 75% | 76% | 64% | 65% |
| Fleet Available Days | 1,848 | 3,744 | 2,661 | 1,746 | 9,999 |
| Operating Revenues: |  |  |  |  |  |
| Time charter | $14,654 | $47,602 | $34,550 | $28,106 | $124,912 |
| Bareboat charter | — | — | — | 728 | 728 |
| Other marine services | 1,506 | 1,197 | 969 | 3,325 | 6,997 |
|  | 16,160 | 48,799 | 35,519 | 32,159 | 132,637 |
| Direct Costs and Expenses: |  |  |  |  |  |
| Operating: |  |  |  |  |  |
| Personnel | 12,065 | 10,150 | 12,893 | 8,128 | 43,236 |
| Repairs and maintenance | 3,283 | 6,370 | 6,155 | 4,199 | 20,007 |
| Drydocking | 4,538 | 3,258 | 2,190 | 2,930 | 12,916 |
| Insurance and loss reserves | 1,339 | 1,153 | 1,416 | 929 | 4,837 |
| Fuel, lubes and supplies | 1,533 | 2,457 | 2,301 | 2,198 | 8,489 |
| Other | 55 | 5,000 | 1,989 | 1,090 | 8,134 |
|  | 22,813 | 28,388 | 26,944 | 19,474 | 97,619 |
| **Direct Vessel (Loss) Profit** | $(6,653) | $20,411 | $8,575 | $12,685 | 35,018 |
| Other Costs and Expenses: |  |  |  |  |  |
| Lease expense | $279 | $350 | $156 | $182 | 967 |
| Administrative and general |  |  |  |  | 22,806 |
| Depreciation and amortization | 5,944 | 8,480 | 6,743 | 4,654 | 25,821 |
|  |  |  |  |  | 49,594 |
| Gains on asset dispositions and impairments, net |  |  |  |  | 36 |
| Operating loss |  |  |  |  | $(14,540) |
| **As of June 30, 2024** |  |  |  |  |  |
| Property and Equipment: |  |  |  |  |  |
| Historical cost | $198,810 | $335,688 | $247,605 | $139,340 | $921,443 |
| Accumulated depreciation | (100,019) | (116,851) | (93,382) | (39,547) | (349,799) |
|  | $98,791 | $218,837 | $154,223 | $99,793 | $571,644 |
| Total Assets (1) | $123,505 | $259,228 | $178,859 | $119,142 | $680,734 |

(1) Total Assets by region does not include corporate assets of $40.8 million as of June 30, 2024.

| For the Three Months Ended June 30, 2023 Time Charter Statistics: | United States (primarily Gulf of Mexico) | Africa and Europe | Middle East and Asia | Latin America | Total |
| --- | ---: | ---: | ---: | ---: | ---: |
| Average Rates Per Day | $16,115 | $14,982 | $13,245 | $18,846 | $15,250 |
| Fleet Utilization | 35% | 94% | 86% | 88% | 78% |
| Fleet Available Days | 1,080 | 1,729 | 1,456 | 831 | 5,096 |
| Operating Revenues: |  |  |  |  |  |
| Time charter | $6,121 | $24,414 | $16,563 | $13,706 | $60,804 |
| Bareboat charter | — | — | — | 364 | 364 |
| Other marine services | 3,004 | 225 | 3,512 | 410 | 7,151 |
|  | 9,125 | 24,639 | 20,075 | 14,480 | 68,319 |
| Direct Costs and Expenses: |  |  |  |  |  |
| Operating: |  |  |  |  |  |
| Personnel | 5,957 | 4,833 | 5,266 | 3,888 | 19,944 |
| Repairs and maintenance | 1,573 | 2,050 | 1,219 | 951 | 5,793 |
| Drydocking | 1,506 | 144 | (684) | 1,290 | 2,256 |
| Insurance and loss reserves | 1,082 | 420 | 720 | 168 | 2,390 |
| Fuel, lubes and supplies | 924 | 1,419 | 425 | 870 | 3,638 |
| Other | 346 | 2,608 | 389 | 366 | 3,709 |
|  | 11,388 | 11,474 | 7,335 | 7,533 | 37,730 |
| **Direct Vessel (Loss) Profit** | $(2,263) | $13,165 | $12,740 | $6,947 | 30,589 |
| Other Costs and Expenses: |  |  |  |  |  |
| Lease expense | $143 | $408 | $67 | $80 | 698 |
| Administrative and general |  |  |  |  | 13,704 |
| Depreciation and amortization | 3,861 | 3,853 | 3,708 | 2,153 | 13,575 |
|  |  |  |  |  | 27,977 |
| Gains on asset dispositions and impairments, net |  |  |  |  | 265 |
| Operating income |  |  |  |  | $2,877 |

28

| For the Six Months Ended June 30, 2023 Time Charter Statistics: | United States (primarily Gulf of Mexico) | Africa and Europe | Middle East and Asia | Latin America | Total |
| --- | ---: | ---: | ---: | ---: | ---: |
| Average Rates Per Day | $17,203 | $13,960 | $13,399 | $17,434 | $14,789 |
| Fleet Utilization | 35% | 90% | 84% | 91% | 77% |
| Fleet Available Days | 2,095 | 3,439 | 2,896 | 1,737 | 10,167 |
| Operating Revenues: |  |  |  |  |  |
| Time charter | $12,685 | $43,410 | $32,591 | $27,533 | $116,219 |
| Bareboat charter | — | — | — | 724 | 724 |
| Other marine services | 6,854 | 450 | 3,539 | 1,742 | 12,585 |
|  | 19,539 | 43,860 | 36,130 | 29,999 | 129,528 |
| Direct Costs and Expenses: |  |  |  |  |  |
| Operating: |  |  |  |  |  |
| Personnel | 12,492 | 9,338 | 10,107 | 7,810 | 39,747 |
| Repairs and maintenance | 2,767 | 4,603 | 1,896 | 2,538 | 11,804 |
| Drydocking | 1,549 | 1,328 | (1,779) | 1,171 | 2,269 |
| Insurance and loss reserves | 2,123 | 738 | 1,905 | 413 | 5,179 |
| Fuel, lubes and supplies | 1,707 | 3,634 | 1,567 | 1,549 | 8,457 |
| Other | 577 | 5,357 | 1,885 | 964 | 8,783 |
|  | 21,215 | 24,998 | 15,581 | 14,445 | 76,239 |
| **Direct Vessel (Loss) Profit** | $(1,676) | $18,862 | $20,549 | $15,554 | 53,289 |
| Other Costs and Expenses: |  |  |  |  |  |
| Lease expense | $279 | $837 | $143 | $159 | 1,418 |
| Administrative and general |  |  |  |  | 25,336 |
| Depreciation and amortization | 7,396 | 7,778 | 7,396 | 4,767 | 27,337 |
|  |  |  |  |  | 54,091 |
| Gains on asset dispositions and impairments, net |  |  |  |  | 3,864 |
| Operating income |  |  |  |  | $3,062 |
| **As of June 30, 2023** |  |  |  |  |  |
| Property and Equipment: |  |  |  |  |  |
| Historical cost | $230,432 | $287,289 | $285,722 | $162,895 | $966,338 |
| Accumulated depreciation | (107,901) | (99,994) | (94,761) | (32,022) | (334,678) |
|  | $122,531 | $187,295 | $190,961 | $130,873 | $631,660 |
| Total Assets (1) | $162,973 | $213,128 | $212,695 | $148,576 | $737,372 |

(1) Total Assets by region does not include corporate assets of $46.8 million as of June 30, 2023.

For additional information, the following tables summarize the worldwide operating results and property and equipment for each of the Company’s vessel classes for the periods indicated (in thousands, except statistics):

| For the Three Months Ended June 30, 2024 Time Charter Statistics: | AHTS (1) | FSV (2) | PSV (3) | Liftboats | Other activity | Total |
| --- | ---: | ---: | ---: | ---: | ---: | ---: |
| Average Rates Per Day | $8,125 | $12,978 | $20,952 | $43,204 | $— | $19,141 |
| Fleet Utilization | 49% | 80% | 66% | 54% | —% | 69% |
| Fleet Available Days | 364 | 2,002 | 1,900 | 728 | — | 4,994 |
| Operating Revenues: |  |  |  |  |  |  |
| Time charter | $1,459 | $20,698 | $26,390 | $17,102 | $— | $65,649 |
| Bareboat charter | — | — | 364 | — | — | 364 |
| Other marine services | 219 | 516 | 2,266 | 666 | 187 | 3,854 |
|  | 1,678 | 21,214 | 29,020 | 17,768 | 187 | 69,867 |
| Direct Costs and Expenses: |  |  |  |  |  |  |
| Operating: |  |  |  |  |  |  |
| Personnel | 1,045 | 5,829 | 8,979 | 6,842 | (1,129) | 21,566 |
| Repairs and maintenance | 465 | 4,572 | 3,151 | 2,054 | 2 | 10,244 |
| Drydocking | 280 | 457 | 2,616 | 2,857 | — | 6,210 |
| Insurance and loss reserves | 97 | 546 | 1,037 | 1,482 | (63) | 3,099 |
| Fuel, lubes and supplies | 69 | 993 | 1,575 | 1,329 | — | 3,966 |
| Other | 230 | 1,850 | 1,850 | 519 | (14) | 4,435 |
|  | 2,186 | 14,247 | 19,208 | 15,083 | (1,204) | 49,520 |
| Other Costs and Expenses: |  |  |  |  |  |  |
| Lease expense | $164 | $— | $3 | $— | $319 | 486 |
| Administrative and general |  |  |  |  |  | 10,889 |
| Depreciation and amortization | 175 | 4,746 | 4,128 | 3,865 | 25 | 12,939 |
|  |  |  |  |  |  | 24,314 |
| Gains on asset dispositions and impairments, net |  |  |  |  |  | 37 |
| Operating loss |  |  |  |  |  | $(3,930) |

(1) Anchor handling towing supply vessel (“AHTS”).

(2) Fast support vessel (“FSV”).

(3) Platform support vessel (“PSV”).

| For the Six Months Ended June 30, 2024 Time Charter Statistics: | AHTS | FSV | PSV | Liftboats | Other activity | Total |
| --- | ---: | ---: | ---: | ---: | ---: | ---: |
| Average Rates Per Day | $8,374 | $12,434 | $20,141 | $48,266 | $— | $19,094 |
| Fleet Utilization | 62% | 76% | 60% | 54% | —% | 65% |
| Fleet Available Days | 728 | 4,004 | 3,811 | 1,456 | — | 9,999 |
| Operating Revenues: |  |  |  |  |  |  |
| Time charter | $3,790 | $37,779 | $45,780 | $37,563 | $— | $124,912 |
| Bareboat charter | — | — | 728 | — | — | 728 |
| Other marine services | 219 | 642 | 2,682 | 2,438 | 1,016 | 6,997 |
|  | 4,009 | 38,421 | 49,190 | 40,001 | 1,016 | 132,637 |
| Direct Costs and Expenses: |  |  |  |  |  |  |
| Operating: |  |  |  |  |  |  |
| Personnel | 2,109 | 11,478 | 17,829 | 12,982 | (1,162) | 43,236 |
| Repairs and maintenance | 685 | 7,665 | 7,544 | 4,089 | 24 | 20,007 |
| Drydocking | 348 | 2,326 | 6,002 | 4,240 | — | 12,916 |
| Insurance and loss reserves | 140 | 823 | 1,432 | 2,764 | (322) | 4,837 |
| Fuel, lubes and supplies | 685 | 2,044 | 3,464 | 2,296 | — | 8,489 |
| Other | 517 | 3,499 | 3,245 | 862 | 11 | 8,134 |
|  | 4,484 | 27,835 | 39,516 | 27,233 | (1,449) | 97,619 |
| Other Costs and Expenses: |  |  |  |  |  |  |
| Lease expense | $335 | $— | $3 | $— | $629 | 967 |
| Administrative and general |  |  |  |  |  | 22,806 |
| Depreciation and amortization | 350 | 9,490 | 8,201 | 7,731 | 49 | 25,821 |
|  |  |  |  |  |  | 49,594 |
| Gains on asset dispositions and impairments, net |  |  |  |  |  | 36 |
| Operating loss |  |  |  |  |  | $(14,540) |
| **As of June 30, 2024** |  |  |  |  |  |  |
| Property and Equipment: |  |  |  |  |  |  |
| Historical cost | $12,669 | $341,536 | $303,673 | $244,462 | $19,103 | $921,443 |
| Accumulated depreciation | (5,485) | (151,788) | (61,363) | (112,357) | (18,806) | (349,799) |
|  | $7,184 | $189,748 | $242,310 | $132,105 | $297 | $571,644 |

| For the Three Months Ended June 30, 2023 Time Charter Statistics: | AHTS | FSV | PSV | Liftboats | Other activity | Total |
| --- | ---: | ---: | ---: | ---: | ---: | ---: |
| Average Rates Per Day | $8,916 | $11,314 | $17,545 | $35,623 | $— | $15,250 |
| Fleet Utilization | 85% | 92% | 80% | 37% | —% | 78% |
| Fleet Available Days | 364 | 2,093 | 1,820 | 819 | — | 5,096 |
| Operating Revenues: |  |  |  |  |  |  |
| Time charter | $2,762 | $21,747 | $25,458 | $10,837 | $— | $60,804 |
| Bareboat charter | — | — | 364 | — | — | 364 |
| Other marine services | — | 71 | 584 | 5,495 | 1,001 | 7,151 |
|  | 2,762 | 21,818 | 26,406 | 16,332 | 1,001 | 68,319 |
| Direct Costs and Expenses: |  |  |  |  |  |  |
| Operating: |  |  |  |  |  |  |
| Personnel | 1,069 | 5,083 | 8,738 | 5,065 | (11) | 19,944 |
| Repairs and maintenance | 186 | 1,134 | 2,998 | 1,472 | 3 | 5,793 |
| Drydocking | 131 | 1,342 | 12 | 849 | (78) | 2,256 |
| Insurance and loss reserves | 78 | 337 | 421 | 1,418 | 136 | 2,390 |
| Fuel, lubes and supplies | 192 | 1,108 | 2,124 | 219 | (5) | 3,638 |
| Other | 329 | 1,536 | 1,405 | 441 | (2) | 3,709 |
|  | 1,985 | 10,540 | 15,698 | 9,464 | 43 | 37,730 |
| Other Costs and Expenses: |  |  |  |  |  |  |
| Lease expense | $332 | $— | $— | $— | $366 | 698 |
| Administrative and general |  |  |  |  |  | 13,704 |
| Depreciation and amortization | 298 | 4,952 | 4,072 | 4,215 | 38 | 13,575 |
|  |  |  |  |  |  | 27,977 |
| Gains on asset dispositions and impairments, net |  |  |  |  |  | 265 |
| Operating income |  |  |  |  |  | $2,877 |

31

| For the Six Months Ended June 30, 2023 Time Charter Statistics: | AHTS | FSV | PSV | Liftboats | Other activity | Total |
| --- | ---: | ---: | ---: | ---: | ---: | ---: |
| Average Rates Per Day | $9,081 | $10,965 | $16,278 | $34,661 | $— | $14,789 |
| Fleet Utilization | 83% | 91% | 75% | 44% | —% | 77% |
| Fleet Available Days | 755 | 4,163 | 3,620 | 1,629 | — | 10,167 |
| Operating Revenues: |  |  |  |  |  |  |
| Time charter | $5,677 | $41,735 | $44,258 | $24,549 | $— | $116,219 |
| Bareboat charter | — | — | 724 | — | — | 724 |
| Other marine services | — | 261 | 1,787 | 8,425 | 2,112 | 12,585 |
|  | 5,677 | 41,996 | 46,769 | 32,974 | 2,112 | 129,528 |
| Direct Costs and Expenses: |  |  |  |  |  |  |
| Operating: |  |  |  |  |  |  |
| Personnel | 2,064 | 9,944 | 17,587 | 10,133 | 19 | 39,747 |
| Repairs and maintenance | 402 | 3,001 | 6,473 | 1,971 | (43) | 11,804 |
| Drydocking | 551 | 1,470 | 621 | (292) | (81) | 2,269 |
| Insurance and loss reserves | 146 | 671 | 840 | 3,325 | 197 | 5,179 |
| Fuel, lubes and supplies | 668 | 2,490 | 4,455 | 838 | 6 | 8,457 |
| Other | 777 | 3,339 | 4,082 | 566 | 19 | 8,783 |
|  | 4,608 | 20,915 | 34,058 | 16,541 | 117 | 76,239 |
| Other Costs and Expenses: |  |  |  |  |  |  |
| Lease expense | $663 | $— | $— | $— | $755 | 1,418 |
| Administrative and general |  |  |  |  |  | 25,336 |
| Depreciation and amortization | 596 | 9,898 | 8,334 | 8,429 | 80 | 27,337 |
|  |  |  |  |  |  | 54,091 |
| Gains on asset dispositions and impairments, net |  |  |  |  |  | 3,864 |
| Operating income |  |  |  |  |  | $3,062 |
| **As of June 30, 2023** |  |  |  |  |  |  |
| Property and Equipment: |  |  |  |  |  |  |
| Historical cost | $27,647 | $352,889 | $301,523 | $265,098 | $19,181 | $966,338 |
| Accumulated depreciation | (19,188) | (139,993) | (45,015) | (111,888) | (18,594) | (334,678) |
|  | $8,459 | $212,896 | $256,508 | $153,210 | $587 | $631,660 |

***Fleet Counts.*** The Company’s fleet count as of June 30, 2024 and December 31, 2023 was as follows:

| June 30, 2024 | Owned | Leased-in | Managed | Total |
| --- | ---: | ---: | ---: | ---: |
| AHTS | 3 | 1 | — | 4 |
| FSV | 22 | — | 1 | 23 |
| PSV | 21 | — | — | 21 |
| Liftboats | 8 | — | — | 8 |
|  | 54 | 1 | 1 | 56 |
| **December 31, 2023** |  |  |  |  |
| AHTS | 3 | 1 | — | 4 |
| FSV | 22 | — | 3 | 25 |
| PSV | 21 | — | — | 21 |
| Liftboats | 8 | — | — | 8 |
|  | 54 | 1 | 3 | 58 |

32

### Operating Income (Loss)

***United States, primarily Gulf of Mexico.*** For the three and six months ended June 30, 2024 and 2023 the Company’s time charter statistics and direct vessel loss in the U.S. were as follows (in thousands, except statistics):

| Time Charter Statistics: Rates Per Day Worked: | For the Three Months Ended June 30, 2024 |  | 2023 |  | For the Six Months Ended June 30, 2024 |  | 2023 |  |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| AHTS | $— |  | $— |  | $— |  | $— |  |
| FSV | 10,345 |  | 9,450 |  | 10,021 |  | 9,490 |  |
| PSV | 14,405 |  | 13,883 |  | 14,191 |  | 14,261 |  |
| Liftboats | 37,544 |  | 29,334 |  | 40,623 |  | 27,951 |  |
| Overall | 22,356 |  | 16,115 |  | 24,779 |  | 17,203 |  |
| Utilization: |  |  |  |  |  |  |  |  |
| AHTS |  | —% |  | —% |  | —% |  | —% |
| FSV |  | 39% |  | 67% |  | 31% |  | 61% |
| PSV |  | 56% |  | 46% |  | 44% |  | 36% |
| Liftboats |  | 29% |  | 18% |  | 28% |  | 24% |
| Overall |  | 37% |  | 35% |  | 32% |  | 35% |
| Available Days: |  |  |  |  |  |  |  |  |
| AHTS | — |  | — |  | — |  | 31 |  |
| FSV | 273 |  | 273 |  | 546 |  | 543 |  |
| PSV | 182 |  | 199 |  | 364 |  | 369 |  |
| Liftboats | 466 |  | 608 |  | 938 |  | 1,152 |  |
| Overall | 921 |  | 1,080 |  | 1,848 |  | 2,095 |  |
| Operating revenues: |  |  |  |  |  |  |  |  |
| Time charter | $7,697 | 94% | $6,121 | 67% | $14,654 | 91% | $12,685 | 65% |
| Other marine services | 480 | 6% | 3,004 | 33% | 1,506 | 9% | 6,854 | 35% |
|  | 8,177 | 100% | 9,125 | 100% | 16,160 | 100% | 19,539 | 100% |
| Direct operating expenses: |  |  |  |  |  |  |  |  |
| Personnel | 6,284 | 77% | 5,957 | 65% | 12,065 | 75% | 12,492 | 64% |
| Repairs and maintenance | 1,879 | 23% | 1,573 | 17% | 3,283 | 20% | 2,767 | 14% |
| Drydocking | 2,570 | 31% | 1,506 | 17% | 4,538 | 28% | 1,549 | 8% |
| Insurance and loss reserves | 943 | 11% | 1,082 | 12% | 1,339 | 8% | 2,123 | 11% |
| Fuel, lubes and supplies | 866 | 11% | 924 | 10% | 1,533 | 10% | 1,707 | 9% |
| Other | 226 | 3% | 346 | 4% | 55 | 0% | 577 | 3% |
|  | 12,768 | 156% | 11,388 | 125% | 22,813 | 141% | 21,215 | 109% |
| Direct Vessel Loss | $(4,591) | (56)% | $(2,263) | (25)% | $(6,653) | (41)% | $(1,676) | (9)% |

### Current Year Quarter compared with Prior Year Quarter

*Operating Revenues*. Charter revenues were $1.6 million higher in the Current Year Quarter compared with the Prior Year Quarter. Charter revenues were $1.8 million higher due to increased day rates of the vessels included in the results of this region in both comparative periods (as applicable to each region, the “Regional Core Fleet”) and $0.2 million higher due to the repositioning of vessels between geographic regions. Charter revenues were $0.4 million lower due to net asset dispositions. Other marine services were $2.5 million lower primarily due to business interruption insurance revenues recorded in the Prior Year Quarter and lower management fees in the Current Year Quarter. As of June 30, 2024, the Company had one of ten owned vessels (one liftboat) cold-stacked in this region compared with one of 13 owned and leased-in vessels (one liftboat) as of June 30, 2023.

*Direct Operating Expenses*. Direct operating expenses were $1.4 million higher in the Current Year Quarter compared with the Prior Year Quarter. Direct operating expenses were $2.5 million higher for the Regional Core Fleet primarily due to the timing of drydocking and repairs expenditures, $0.1 million higher due to the repositioning of vessels between geographic regions and $1.2 million lower due to net asset dispositions.

### Current Year Six Months compared with Prior Year Six Months

*Operating Revenues*. Charter revenues were $2.0 million higher in the Current Year Six Months compared with the Prior Year Six Months. Charter revenues were $2.4 million higher due to increased day rates for the Regional Core Fleet and $0.4 million lower due to net asset dispositions. Other marine services were $5.3 million lower primarily due to business interruption insurance revenues recorded in the Prior Year Six Months and lower management fees in the Current Year Six Months.

*Direct Operating Expenses*. Direct operating expenses were $1.6 million higher in the Current Year Six Months compared with the Prior Year Six Months. Direct operating expenses were $4.4 million higher for the Regional Core Fleet primarily due to the timing of drydocking and repairs expenditures, $1.7 million lower due to net asset dispositions and $1.1 million lower due to the repositioning of vessels between geographic regions.

***Africa and Europe.*** For the three and six months ended June 30, 2024 and 2023 the Company’s time charter statistics and direct vessel profit in Africa and Europe were as follows (in thousands, except statistics):

| Time Charter Statistics: Rates Per Day Worked: | For the Three Months Ended June 30, 2024 |  | 2023 |  | For the Six Months Ended June 30, 2024 |  | 2023 |  |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| AHTS | $10,350 |  | $10,267 |  | $10,062 |  | $10,189 |  |
| FSV | 15,416 |  | 13,123 |  | 14,460 |  | 12,849 |  |
| PSV | 25,032 |  | 20,318 |  | 23,612 |  | 18,078 |  |
| Overall | 18,580 |  | 14,982 |  | 16,951 |  | 13,960 |  |
| Utilization: |  |  |  |  |  |  |  |  |
| AHTS |  | 34% |  | 80% |  | 50% |  | 87% |
| FSV |  | 85% |  | 99% |  | 87% |  | 96% |
| PSV |  | 74% |  | 93% |  | 68% |  | 83% |
| Overall |  | 74% |  | 94% |  | 75% |  | 90% |
| Available Days: |  |  |  |  |  |  |  |  |
| AHTS | 273 |  | 273 |  | 546 |  | 543 |  |
| FSV | 979 |  | 910 |  | 1,889 |  | 1,810 |  |
| PSV | 717 |  | 546 |  | 1,309 |  | 1,086 |  |
| Overall | 1,969 |  | 1,729 |  | 3,744 |  | 3,439 |  |
| Operating revenues: |  |  |  |  |  |  |  |  |
| Time charter | $27,047 | 96% | $24,414 | 99% | $47,602 | 98% | $43,410 | 99% |
| Other marine services | 1,028 | 4% | 225 | 1% | 1,197 | 2% | 450 | 1% |
|  | 28,075 | 100% | 24,639 | 100% | 48,799 | 100% | 43,860 | 100% |
| Direct operating expenses: |  |  |  |  |  |  |  |  |
| Personnel | 4,969 | 18% | 4,833 | 20% | 10,150 | 21% | 9,338 | 21% |
| Repairs and maintenance | 3,161 | 11% | 2,050 | 8% | 6,370 | 13% | 4,603 | 11% |
| Drydocking | 1,226 | 4% | 144 | 1% | 3,258 | 7% | 1,328 | 3% |
| Insurance and loss reserves | 819 | 3% | 420 | 2% | 1,153 | 2% | 738 | 2% |
| Fuel, lubes and supplies | 1,170 | 4% | 1,419 | 6% | 2,457 | 5% | 3,634 | 8% |
| Other | 2,801 | 10% | 2,608 | 10% | 5,000 | 10% | 5,357 | 12% |
|  | 14,146 | 50% | 11,474 | 47% | 28,388 | 58% | 24,998 | 57% |
| Direct Vessel Profit | $13,929 | 50% | $13,165 | 53% | $20,411 | 42% | $18,862 | 43% |

34

### Current Year Quarter compared with Prior Year Quarter

*Operating Revenues.* Charter revenues were $2.6 million higher in the Current Year Quarter compared with the Prior Year Quarter. Charter revenues were $3.5 million higher for the Regional Core Fleet due to the repositioning of vessels between geographic regions and $0.9 million lower for the Regional Core Fleet primarily due to lower utilization. As of June 30, 2024, the Company had one of 22 owned and leased-in vessels (one AHTS) cold-stacked in this region that is classified as held for sale.

*Direct Operating Expenses.* Direct operating expenses were $2.7 million higher in the Current Year Quarter compared with the Prior Year Quarter primarily due to the repositioning of vessels between geographic regions.

### Current Year Six Months compared with Prior Year Six Months

*Operating Revenues.* Charter revenues were $4.2 million higher in the Current Year Six Months compared with the Prior Year Six Months. Charter revenues were $3.7 million higher due to the repositioning of vessels between geographic regions and $0.5 million higher for the Regional Core Fleet due to increased day rates.

*Direct Operating Expenses.* Direct operating expenses were $3.4 million higher in the Current Year Six Months compared with the Prior Year Six Months primarily due to the repositioning of vessels between geographic regions.

***Middle East and Asia.*** For the three and six months ended June 30, 2024 and 2023 the Company’s time charter statistics and direct vessel profit in the Middle East and Asia were as follows (in thousands, except statistics):

| Time Charter Statistics: Rates Per Day Worked: | For the Three Months Ended June 30, 2024 |  | 2023 |  | For the Six Months Ended June 30, 2024 |  | 2023 |  |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| AHTS | $5,786 |  | $5,666 |  | $5,784 |  | $5,723 |  |
| FSV | 8,656 |  | 8,990 |  | 8,159 |  | 8,840 |  |
| PSV | 16,499 |  | 8,523 |  | 15,902 |  | 8,584 |  |
| Liftboats | 45,900 |  | 42,499 |  | 45,900 |  | 42,499 |  |
| Overall | 17,083 |  | 13,245 |  | 17,012 |  | 13,399 |  |
| Utilization: |  |  |  |  |  |  |  |  |
| AHTS |  | 96% |  | 100% |  | 98% |  | 86% |
| FSV |  | 85% |  | 100% |  | 74% |  | 100% |
| PSV |  | 67% |  | 57% |  | 66% |  | 53% |
| Liftboats |  | 100% |  | 94% |  | 100% |  | 96% |
| Overall |  | 82% |  | 86% |  | 76% |  | 84% |
| Available Days: |  |  |  |  |  |  |  |  |
| AHTS | 91 |  | 91 |  | 182 |  | 181 |  |
| FSV | 568 |  | 728 |  | 1,205 |  | 1,448 |  |
| PSV | 455 |  | 455 |  | 910 |  | 905 |  |
| Liftboats | 182 |  | 182 |  | 364 |  | 362 |  |
| Overall | 1,296 |  | 1,456 |  | 2,661 |  | 2,896 |  |
| Operating revenues: |  |  |  |  |  |  |  |  |
| Time charter | $18,073 | 97% | $16,563 | 83% | $34,550 | 97% | $32,591 | 90% |
| Other marine services | 619 | 3% | 3,512 | 17% | 969 | 3% | 3,539 | 10% |
|  | 18,692 | 100% | 20,075 | 100% | 35,519 | 100% | 36,130 | 100% |
| Direct operating expenses: |  |  |  |  |  |  |  |  |
| Personnel | 6,930 | 37% | 5,266 | 26% | 12,893 | 36% | 10,107 | 28% |
| Repairs and maintenance | 3,443 | 19% | 1,219 | 6% | 6,155 | 17% | 1,896 | 5% |
| Drydocking | 707 | 4% | (684) | (3)% | 2,190 | 6% | (1,779) | (5)% |
| Insurance and loss reserves | 798 | 4% | 720 | 4% | 1,416 | 4% | 1,905 | 5% |
| Fuel, lubes and supplies | 1,103 | 6% | 425 | 2% | 2,301 | 7% | 1,567 | 5% |
| Other | 989 | 5% | 389 | 2% | 1,989 | 6% | 1,885 | 5% |
|  | 13,970 | 75% | 7,335 | 37% | 26,944 | 76% | 15,581 | 43% |
| Direct Vessel Profit | $4,722 | 25% | $12,740 | 63% | $8,575 | 24% | $20,549 | 57% |

### Current Year Quarter compared with Prior Year Quarter

*Operating Revenues.* Charter revenues were $1.5 million higher in the Current Year Quarter compared with the Prior Year Quarter. Charter revenues were $3.2 million higher for the Regional Core Fleet as a result of increased liftboat and PSV day rates and utilization, $0.9 million lower due to net asset dispositions and $0.8 million lower due to the repositioning of vessels between geographic regions. Other marine services were $2.9 million lower primarily due to business interruption insurance revenues recorded in the Prior Year Quarter. As of June 30, 2024, the Company had no vessels cold-stacked in this region.

*Direct Operating Expenses.* Direct operating expenses were $6.6 million higher in the Current Year Quarter compared with the Prior Year Quarter. Direct operating expenses were $7.0 million higher for the Regional Core Fleet primarily due to the timing of drydocking and repair expenditures and insurance reimbursements related to expenses in prior periods, $0.3 million lower due to net asset dispositions and $0.1 million lower due to the repositioning of vessels between geographic regions.

### Current Year Six Months compared with Prior Year Six Months

*Operating Revenues.* Charter revenues were $2.0 million higher in the Current Year Six Months compared with the Prior Year Six Months. Charter revenues were $4.8 million higher for the Regional Core Fleet as a result of increased liftboat and PSV day rates and utilization, $1.7 million lower due to net asset dispositions and $1.1 million lower due to the repositioning of vessels between geographic regions. Other marine services were $2.6 million lower primarily due to business interruption insurance revenues recorded in the Prior Year Six Months.

*Direct Operating Expenses.* Direct operating expenses were $11.4 million higher in the Current Year Six Months compared with the Prior Year Six Months. Direct operating expenses were $11.4 million higher for the Regional Core Fleet primarily due to the timing of drydocking and repair expenditures and insurance reimbursements related to expenses in prior periods, $0.7 million higher due to the repositioning of vessels between geographic regions and $0.7 million lower due to net asset dispositions.

***Latin America (Brazil, Mexico, Central and South America).*** For the three and six months ended June 30, 2024 and 2023 the Company’s time charter statistics and direct vessel profit in Latin America were as follows (in thousands, except statistics):

| Time Charter Statistics: Rates Per Day Worked: | For the Three Months Ended June 30, 2024 |  | 2023 |  | For the Six Months Ended June 30, 2024 |  | 2023 |  |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| FSV | $14,950 |  | $14,950 |  | $14,950 |  | $11,960 |  |
| PSV | 20,539 |  | 19,690 |  | 20,798 |  | 18,241 |  |
| Liftboats | 46,904 |  | 15,967 |  | 67,293 |  | 24,450 |  |
| Overall | 22,437 |  | 18,846 |  | 25,287 |  | 17,434 |  |
| Utilization: |  |  |  |  |  |  |  |  |
| FSV |  | 93% |  | 60% |  | 95% |  | 80% |
| PSV |  | 60% |  | 96% |  | 50% |  | 96% |
| Liftboats |  | 96% |  | 90% |  | 98% |  | 75% |
| Overall |  | 71% |  | 88% |  | 64% |  | 91% |
| Available Days: |  |  |  |  |  |  |  |  |
| FSV | 182 |  | 182 |  | 364 |  | 362 |  |
| PSV | 546 |  | 620 |  | 1,228 |  | 1,260 |  |
| Liftboats | 80 |  | 29 |  | 154 |  | 115 |  |
| Overall | 808 |  | 831 |  | 1,746 |  | 1,737 |  |
| Operating revenues: |  |  |  |  |  |  |  |  |
| Time charter | $12,832 | 86% | $13,706 | 95% | $28,106 | 88% | $27,533 | 92% |
| Bareboat charter | 364 | 2% | 364 | 2% | 728 | 2% | 724 | 2% |
| Other marine services | 1,727 | 12% | 410 | 3% | 3,325 | 10% | 1,742 | 6% |
|  | 14,923 | 100% | 14,480 | 100% | 32,159 | 100% | 29,999 | 100% |
| Direct operating expenses: |  |  |  |  |  |  |  |  |
| Personnel | 3,383 | 23% | 3,888 | 27% | 8,128 | 25% | 7,810 | 26% |
| Repairs and maintenance | 1,761 | 12% | 951 | 7% | 4,199 | 13% | 2,538 | 9% |
| Drydocking | 1,707 | 11% | 1,290 | 9% | 2,930 | 9% | 1,171 | 4% |
| Insurance and loss reserves | 539 | 4% | 168 | 1% | 929 | 3% | 413 | 1% |
| Fuel, lubes and supplies | 827 | 5% | 870 | 6% | 2,198 | 7% | 1,549 | 5% |
| Other | 419 | 3% | 366 | 2% | 1,090 | 4% | 964 | 3% |
|  | 8,636 | 58% | 7,533 | 52% | 19,474 | 61% | 14,445 | 48% |
| Direct Vessel Profit | $6,287 | 42% | $6,947 | 48% | $12,685 | 39% | $15,554 | 52% |

37

### Current Year Quarter compared with Prior Year Quarter

*Operating Revenues.* Charter revenues were $0.9 million lower in the Current Year Quarter compared with the Prior Year Quarter. Charter revenues were $1.1 million lower for the Regional Core Fleet due to reduced fleet utilization and $0.2 million higher due to the repositioning of vessels between geographic regions. Other marine services were $1.3 million higher primarily due to higher mobilization revenues. As of June 30, 2024, the Company had no vessels cold-stacked in this region.

*Direct Operating Expenses.* Direct operating expenses were $1.1 million higher in the Current Year Quarter compared with the Prior Year Quarter. Direct operating expenses were $0.6 million higher due to the repositioning of vessels between geographic regions and $0.5 million higher for the Regional Core Fleet primarily due to the timing of certain drydocking and repair expenditures.

### Current Year Six Months compared with Prior Year Six Months

*Operating Revenues.* Charter revenues were $0.6 million higher in the Current Year Six Months compared with the Prior Year Six Months. Charter revenues were $1.4 million higher due to the repositioning of vessels between geographic regions and $0.8 million lower for the Regional Core Fleet due to reduced fleet utilization. Other marine services were $1.6 million higher primarily due to higher mobilization revenues.

*Direct Operating Expenses.* Direct operating expenses were $5.0 million higher in the Current Year Six Months compared with the Prior Year Six Months. Direct operating expenses were $2.6 million higher due to the repositioning of vessels between geographic regions and $2.4 million higher for the Regional Core Fleet primarily due to the timing of certain drydocking and repair expenditures.

### Other Operating Expenses

***Lease Expense.*** Leased-in equipment expense for the Current Year Quarter and Current Year Six Months was $0.2 million lower and $0.5 million lower compared to the Prior Year Quarter and Prior Year Six Months due to having one leased-in vessel in 2024 compared to two in 2023.

***Administrative and general.*** Administrative and general expenses for the Current Year Quarter and Current Year Six Months were $2.8 million lower and $2.5 million lower compared to the Prior Year Quarter and Prior Year Six Months primarily due to decreases in allowance for credit losses.

***Depreciation and amortization.*** Depreciation and amortization expense for the Current Year Quarter and Current Year Six Months were $0.6 million lower and $1.5 million lower compared to the Prior Year Quarter and Prior Year Six Months primarily due to net fleet changes.

***Gains (Losses) on Asset Dispositions and Impairments, Net.*** During the Current Year Quarter, the Company sold other equipment for net cash proceeds of $0.1 million, after transaction costs, and a de minimis gain. During the Prior Year Quarter, the Company sold one specialty vessel, previously removed from service, and other equipment for net cash proceeds of $0.4 million, after transaction costs, and a gain of $0.3 million.

During the Current Six Months, the Company sold other equipment for net cash proceeds of $0.1 million, after transaction costs, and a de minimis gain. During the Prior Year Six Months, the Company sold three liftboats, one specialty vessel, previously removed from service, and other equipment, previously classified as held for sale, as well as other equipment not previously classified as such, for net cash proceeds of $8.0 million, after transaction costs, and a gain of $2.9 million.

### Other Income (Expense), Net

For the three and six months ended June 30, 2024 and 2023, the Company’s other income (expense) was as follows (in thousands):

| Other Income (Expense): | Three Months Ended June 30, 2024 | 2023 | Six Months Ended June 30, 2024 | 2023 |
| --- | ---: | ---: | ---: | ---: |
| Interest income | $445 | $422 | $1,038 | $882 |
| Interest expense | (10,190) | (8,736) | (20,499) | (17,524) |
| Derivative gains (losses), net | 104 | — | (439) | — |
| Foreign currency losses, net | (560) | (603) | (640) | (1,428) |
| Other, net | — | — | (95) | — |
|  | $(10,201) | $(8,917) | $(20,635) | $(18,070) |

***Interest income.*** Interest income for the Current Year Quarter and Current Year Six Months compared with the Prior Year Quarter and Prior Year Six Months was nearly flat.

***Interest expense.*** Interest expense was higher in the Current Year Quarter and Current Year Six Months compared with the Prior Year Quarter and Prior Year Six Months primarily due to a higher interest rate on the 2023 SMFH Credit Facility (which bears interest at a fixed rate of 11.75% per annum),which was entered into subsequent to June 30, 2023, as compared with the 2018 SMFH Credit Facility.

***Derivative gains (losses), net.*** Net derivative gains (losses) for the Current Year Quarter and Current Year Six Months compared with the Prior Year Quarter and Prior Year Six Months increased due to the Company entering into an open forward currency exchange contract in the fourth quarter of 2023.

***Foreign currency losses, net.*** Net foreign currency losses for the Current Year Quarter and Current Year Six Months compared with the Prior Year Quarter and Prior Year Six Months decreased primarily due to the strengthening of the pound sterling in relation to the U.S. dollar.

### Income Tax Expense

During the six months ended June 30, 2024, the Company’s effective income tax rate of 0.7% was primarily due to foreign taxes paid that are not creditable against U.S. income taxes and foreign losses for which there is no benefit for U.S. income tax purposes.

### Equity in Earnings of 50% or Less Owned Companies

Equity in earnings of 50% or less owned companies for the Current Year Quarter compared with the Prior Year Quarter were $0.6 million lower and earnings for the Current Year Six Months compared with the Prior Year Six Months were $1.0 million lower due to the following changes in equity earnings (losses) (in thousands):

|  | Three Months Ended June 30, 2024 | 2023 | Six Months Ended June 30, 2024 | 2023 |
| --- | ---: | ---: | ---: | ---: |
| SEACOR Marine Arabia | $1,698 | $613 | $1,292 | $815 |
| Other | (732) | (240) | (1,426) | 94 |
|  | $966 | $373 | $(134) | $909 |

39

### Liquidity and Capital Resources

### General

The Company’s ongoing liquidity requirements arise primarily from working capital needs, capital commitments and its obligations to service outstanding debt and comply with covenants under its debt facilities. The Company may use its liquidity to fund capital expenditures, make acquisitions or to make other investments. Sources of liquidity are cash balances, cash flows from operations and sales under the Company’s ATM Program, which has approximately $24.9 million of remaining sales capacity as of June 30, 2024. From time to time, the Company may secure additional liquidity through asset sales or the issuance of debt, shares of Common Stock or common stock of its subsidiaries, preferred stock or a combination thereof.

As of June 30, 2024 and June 30, 2023, the Company held balances of cash, cash equivalents and restricted cash totaling $42.9 million and $43.5 million, respectively.

As of June 30, 2024, the Company had outstanding debt of $306.3 million, net of debt discount and issue costs. The Company’s contractual long-term debt maturities as of June 30, 2024, are as follows (in thousands):

|  | Actual |
| --- | ---: |
| Remainder 2024 | $14,303 |
| 2025 | 28,605 |
| 2026 | 152,405 |
| 2027 | 27,165 |
| 2028 | 110,257 |
| Years subsequent to 2028 | 6,227 |
|  | $338,962 |

As of June 30, 2024, the Company had unfunded capital commitments of $12.2 million for miscellaneous vessel equipment, including $10.1 million in respect of hybrid battery power systems. Of the unfunded capital commitments, $6.9 million is payable during 2024 and $5.3 million is payable during 2025. In addition to the unfunded capital commitments above, the Company has indefinitely deferred an additional $9.2 million of capital commitments with respect to one FSV.

### Summary of Cash Flows

The following is a summary of the Company’s cash flows for the six months ended June 30, 2024 and 2023 (in thousands):

| Cash flows provided by or (used in): | Six Months Ended June 30, 2024 | 2023 |
| --- | ---: | ---: |
| Operating Activities | $(19,416) | $3,331 |
| Investing Activities | (3,988) | 17,533 |
| Financing Activities | (17,868) | (20,362) |
| Effects of Exchange Rate Changes on Cash, Restricted Cash and Cash Equivalents | 1 | (1) |
| Net Change in Cash, Restricted Cash and Cash Equivalents | $(41,271) | $501 |

40

### Operating Activities

Cash flows used in operating activities increased by $22.7 million in the Current Year Six Months compared with the Prior Year Six Months primarily due to a decrease in utilization offset by changes in working capital. The components of cash flows provided by and/or used in operating activities during the Current Year Six Months and Prior Year Six Months were as follows (in thousands):

| DVP: | Six Months Ended June 30, 2024 | 2023 |
| --- | ---: | ---: |
| United States, primarily Gulf of Mexico | $(6,653) | $(1,676) |
| Africa and Europe | 20,411 | 18,862 |
| Middle East and Asia | 8,575 | 20,549 |
| Latin America | 12,685 | 15,554 |
| Operating, leased-in equipment | (1,131) | (1,311) |
| Administrative and general (excluding provisions for bad debts and amortization of share awards) | (19,532) | (19,727) |
| Other, net (excluding non-cash losses) | (95) | — |
| Dividends received from 50% or less owned companies | 1,418 | 1,044 |
|  | 15,678 | 33,295 |
| Changes in operating assets and liabilities before interest and income taxes | (20,124) | (16,378) |
| Cash settlements on derivative transactions, net | 164 | 380 |
| Interest paid, excluding capitalized interest (1) | (16,122) | (14,292) |
| Interest received | 1,038 | 882 |
| Income taxes paid, net | (50) | (556) |
| Total cash flows (used in) provided by operating activities | $(19,416) | $3,331 |

(1) During the Current Year Six Months and the Prior Year Six Months, the Company paid no capitalized interest.

For a detailed discussion of the Company’s financial results for the reported periods, see “Consolidated Results of Operations” included above. Changes in operating assets and liabilities before interest and income taxes are the result of the Company’s working capital requirements.

### Investing Activities

During the Current Year Six Months, net cash used in investing activities was $4.0 million, primarily as a result of the following:

- capital expenditures were $4.1 million; and
- the Company sold other equipment for net cash proceeds of $0.1 million, after transaction costs, and a de minimis gain.

During the Prior Year Six Months, net cash provided by investing activities was $17.5 million, primarily as a result of the following:

- capital expenditures were $0.5 million;
- the Company sold three liftboats, one specialty vessel, previously removed from service, and other equipment, previously classified as held for sale, as well as other equipment not previously classified as such for net cash proceeds of $8.0 million, after transaction costs, and a gain of $2.9 million; and
- the Company received $10.0 million of principal payments under the MexMar Third A&R Facility Agreement.

### Financing Activities

During the Current Year Six Months, net cash used in financing activities was $17.9 million, primarily as a result of the following:

- the Company made scheduled payments on long-term debt and other obligations of $14.1 million;
- the Company received $0.1 million proceeds from the exercise of stock options; and
- the Company made payments on tax withholdings for restricted stock vesting of $3.9 million.

During the Prior Year Six Months, net cash used in financing activities was $20.4 million primarily as a result of the following:

- the Company made scheduled payments on long-term debt and other obligations of $18.1 million;
- the Company made payments on debt extinguishment of $26.8 million;
- the Company received proceeds from the issuance of long-term debt of $27.2 million;
- the Company made payments on finance leases of $0.3 million; and
- the Company made payments on tax withholdings for restricted stock vesting and director share awards of $2.4 million.

### Short and Long-Term Liquidity Requirements

The Company believes that a combination of cash balances on hand, cash generated from operating activities and access to the credit and capital markets, including the $24.9 million in remaining capacity under the ATM Program, will provide sufficient liquidity to meet its obligations, including to support its capital expenditures program, working capital needs, debt service requirements and covenant compliance over the short to long term. The Company continually evaluates possible acquisitions and dispositions of certain businesses and assets. The Company’s sources of liquidity may be impacted by the general condition of the markets in which it operates and the broader economy as a whole, which may limit its access to or the availability of the credit and capital markets on acceptable terms. Management continuously monitors the Company’s liquidity and compliance with covenants in its credit facilities.

### Debt Securities and Credit Agreements

For a discussion of the Company’s debt securities and credit agreements, see “Note 4. Long-Term Debt” in the unaudited consolidated financial statements included in Part I. Item 1. “Financial Statements” elsewhere in this Quarterly Report on Form 10-Q and in “Note 6. Long-Term Debt” in the Company’s audited consolidated financial statements included in its 2023 Annual Report. There have been no material changes to the Company’s long-term debt during the period.

### Future Cash Requirements

For a discussion of the Company’s future cash requirements, refer to “Management’s Discussion and Analysis of Financial Condition and Results of Operations - Liquidity and Capital Resources” in the Company’s 2023 Annual Report. There has been no material change in the Company’s future cash requirements since our fiscal year ended December 31, 2023, except as described in “Results of Operations - Liquidity and Capital Resources” in this report.

### Contingencies

For a discussion of the Company’s contingencies, see “Note 9. Commitments and Contingencies” in the unaudited consolidated financial statements included in Part I. Item 1. “Financial Statements” elsewhere in this Quarterly Report on Form 10-Q.

## Market risk

As filed, 292 characters.

For a discussion of the Company’s exposure to market risk, refer to “Quantitative and Qualitative Disclosures About Market Risk” included in the Company’s 2023 Annual Report. There has been no material change in the Company’s exposure to market risk during the six months ended June 30, 2024.

## Controls and procedures

As filed, 2,433 characters.

### Evaluation of Disclosure Controls and Procedures

With the participation of the Company’s principal executive officer and principal financial officer, management evaluated the effectiveness of the Company’s disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act), as of June 30, 2024. Based on their evaluation, the Company’s principal executive officer and principal financial officer concluded that the Company’s disclosure controls and procedures were effective as of June 30, 2024 to provide reasonable assurance that information required to be disclosed by the Company in reports filed or submitted under the Exchange Act is (i) recorded, processed, summarized and reported within the time periods specified in the United States Securities and Exchange Commission’s (“SEC”) rules and forms and (ii) accumulated and communicated to the Company’s management, including its Chief Executive Officer and Chief Financial Officer, as appropriate to allow timely decisions regarding required disclosure.

The Company’s disclosure controls and procedures have been designed to ensure that information required to be disclosed by the Company in the reports it files or submits under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by the Company in the reports it files or submits under the Exchange Act is accumulated and communicated to the Company’s management, including its principal executive and principal financial officers, to allow timely decisions regarding required disclosures. All internal control systems, no matter how well designed, have inherent limitations. Therefore, even those internal control systems determined to be effective can provide only a level of reasonable assurance with respect to financial statement preparation and presentation.

### Changes in Internal Control Over Financial Reporting

There have been no changes in the Company’s internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) that occurred during the Current Year Quarter that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.

## Risk factors

As filed, 216 characters.

For a discussion of the Company’s risk factors, refer to “Risk Factors” included in the Company’s 2023 Annual Report. There have been no material changes in the Company’s risk factors during the Current Year Quarter.

Filed Jul 31, 2024.
Source: SEC EDGAR, the filing index for accession 0000950170-24-088727. Last ingested by Listed: Nov 2, 2026, 17:31 ET. No prices; not investment advice.