Seacor Holdings, which is being purchased by American Industrial Partners, reported higher income for its ocean and inland transportation divisions
The Florida-headquartered vessel operator reported group operating income during Q4 2020 of US$13.3M, compared with US$2.6M for the same period in 2019. Seacor Holdings reported net income of US$10.8M during October to December 2020, compared with a net loss of US$1.9M in Q4 2019.
Contributing to this was a US$7.8M reduction in drydocking costs for its vessels and tugs in Q4 2020, compared with the same period in 2019.
Seacor’s ocean transportation and logistics services have been disrupted by ongoing coronavirus pandemic restrictions in North America. “Covid-19 continued to negatively impact the performance of Seacor Island Lines and Seabulk Towing,” Seacor said.
It has seen a drop in ships calling into harbours where its tugs operate and on ships transporting freight into the Bahamas and Turks & Caicos. “Although ship calls have rebounded from the lows earlier in the year, activity remained below pre-pandemic levels,” Seacor said.
It reported operating income from its ocean transportation and logistics services of US$12.6M in Q4 2020 compared with US$7.6M in the comparable three months in 2019 due to higher barge earnings for transporting agricultural products.
Seacor’s operating income from the terminal business improved due to increased throughput volumes at the company’s dry bulk facilities, as a result of new contracts primarily supporting fertiliser customers. The number of container movements on barges increased and operating costs for towage and stevedore activities were lower.
However, Seacor’s fleeting operations suffered from reduced liquid tank barge activity in the St Louis region due to lower demand for petroleum products.
Its operating income for inland transportation and logistics services was US$9.8M in Q4 2020, compared with US$1.4M in Q4 2019.
Seacor has paid US$4.1M more in corporate expenses mainly due to advisory and legal fees associated with the proposed merger transaction with American Industrial Partners. This acquisition offer, priced at US$41.50 per share, remains outstanding with Seacor’s board of directors recommending it to shareholders.
Seacor’s capital commitments, as of 1 January 2021 were US$43.1M as it modernises its fleet with four US-flag harbour tugs and one inland river towboat on order from US shipyards. These new vessels are scheduled for delivery in 2021-22.
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