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Hornbeck stacks over a quarter of its OSV fleet in Q1

Hornbeck stacks over a quarter of its OSV fleet in Q1
Hornbeck Offshore now has 18 vessels stacked as the offshore downturn leaves a a supply glut and demand dearth in the Gulf of Mexico.

As the company announced a $35.8m profit for the first quarter, it also revealed current contract coverage of 36% of fleet days for 2015 and 7% for 2016.

The first quarter results were boosted by a $33m pre-tax gain on the sale of assets, revenues of $134.6m for the first quarter represent a $2m decrease compared to Q1 2014, and a $24.6m drop compared to Q4 2014.

Hornbeck expects an average of 15.4 vessels to be stacked in 2015, and 18 in 2016. The stacked vessels would leave an average fleet of 45.5 active OSVs in 2015 and 44 in 2016, as over a quarter of its fleet is laid up.

Hornbeck sold three OSVs to the US Navy during the first quarter, and an option for a fourth is expected to be firmed up this year, bringing the total value of the sale to $152m, and a total gain from the sale to $44.1m.

The company stated that its liquidity position is such that it can continue operations under its current forecasts, fund its debt obligations and meet newbuild payments for its orderbook of eight ships through to their delivery at the end of 2016 without dipping in to an untouched $300m revolving credit facility.