Coronavirus has impacted Seacor Holdings’ earnings and income for its ocean transportation and logistics services
However, the group’s inland transportation, government and healthcare businesses performed better this year.
Seacor Holdings’ net income was US$7.0M in the second quarter to 30 June 2020, compared with US$14.6M in the same period in 2019. Its cash earnings were US$19.2M in Q2 2020, versus US$32.9M in the comparable period last year.
Seacor executive chairman Charles Fabrikant said the Covid-19 pandemic in North America and the Caribbean had affected its operations this year, particularly in Q2 2020.
“Our businesses have continued to perform their essential services in the face of the unprecedented challenges presented by Covid-19,” said Mr Fabrikant. “We have begun to see an uptick in activity in some of our businesses that were adversely impacted.”
Its liner and logistics support business in the Caribbean and Bahamas, Seacor Island Lines, was severely affected in April, but has “experienced increased demand in the last half of the quarter” said Mr Fabrikant.
“Although activity is not back to pre-pandemic levels, it is considerably better than in April,” he said.
Its ship assistance business in harbours, Seabulk Towing was affected by Covid-19 “due to the overall reduction of ship calls in its port network” said Mr Fabrikant. “Activity has improved modestly from mid-April but lags pre-Covid-19 levels.”
In the face of the coronavirus, the US Government halted military cargo transportation throughout Q2 2020. This affected Seacor’s Waterman Logistics business, but US military groups have started shipping cargoes again.
“Another positive development was [subsidiary] Witt O’Brien’s expanding its business, playing a critical role helping over 60 governments, healthcare organisations, and educational institutions to access and deploy federal Covid-19 funds,” said Mr Fabrikant.
Ocean transportation and logistics services’ operating income was US$9.3M in Q2 2020, compared with US$19.1M in the same quarter in 2019.
Freight demand into the Bahamas and the Turks and Caicos saw a sharp decline in early April. By mid-May, freight demand began to rebound although activity remains below pre-pandemic levels.
Seacor’s inland transportation and logistics services’ operating income was US$8.4M in Q2 2020, compared with an operating loss of US$1.5M in the comparable period in 2019.
Seabulk Towing offers offshore towing and provides ship services in seven ports in the Gulf of Mexico ports and Florida coast. It has ordered four new Rotortugs from Master Boat Builders with one due to be delivered by the end of this year and the other three in 2021.
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