SMHI - Seacor Marine Holdings: Lowering Estimates After Slow Start To The Year - Buy

2024-05-14 22:58:41 ET

Summary

• Two weeks ago, leading offshore support vessel provider SEACOR Marine Holdings reported disappointing first quarter results, with revenues and profitability falling well short of expectations.
• While the company's average dayrate of $19,042 represented another multi-year high, fleet utilization of just 62% dropped to its lowest levels in recent years.
• Cash was down by $17.9 million sequentially. The company ended the quarter with $59.6 million in unrestricted cash and $345.5 million in debt.
• Meaningful exposure to Saudi Aramco might result in some near-term pressure on the company's Middle East segment.
• A slow start to the year in combination with some anticipated short-term pressures in Saudi Arabia has caused me to revise my estimates and reduce the price target from $20 to $17.50.

Note:

I have covered SEACOR Marine Holdings Inc. or "SEACOR Marine"( SMHI ) previously, so investors should view this as an update to my earlier articles on the company. ...

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