Thursday, Seahawk Drilling, Inc. (HAWK) reported a loss for the third-quarter, reflecting more-than-halved revenues and a hefty asset impairment charge.
The Houston, Texas-based offshore drilling company's net loss for the quarter was of $32.4 million or $2.79 per share, compared with a profit $43.6 million or $3.77 per share last year.
Loss from continuing operations was $32.5 million or $2.80 per share compared with profit of $41.8 million or $3.61 per share in 2008.
The third quarter included a number of charges, including an asset impairment charge of $32.1 million, or $20.9 million after tax, and $1.80 per share, as part of an assessment of its rigs' fair value at the time of spin-off.
Adjusted for the charges, loss from continuing operations was $6.7 million or $0.58 per share. Three analysts polled by Thomson Reuters expected Seahawk to report a loss of $1.65 per share for the third quarter. Analysts' estimates typically exclude one-time items.
For the three months ended September 30, revenues declined significantly to $67.61 million from $163.96 million a year ago. Two analysts had revenue estimate of $38.35 million for the third quarter.
Seahawk's Gulf of Mexico business generated $8.4 million in revenues in the U.S. compared with $62.2 million in the third quarter of 2008. Average revenue per day decreased to $46,400 from $91,100, and operating days decreased to 180 days, or 14% utilization, from 683 days, or 76% utilization, in the same period a year ago. The U.S. segment recorded an operating loss of $42.1 million compared with an operating income of $17.9 million in 2008.
In Mexico, Seahawk's business generated $59.3 million in revenues compared with $101.8 million in the third quarter of 2008. Average revenue per day decreased to $116,400 from $113,700, and operating days decreased from 918 days, or 63% utilization, to 509 days, or 73% utilization last year. Mexican segment recorded operating income of $821,000 compared with $51.3 million last year.
General and administrative, excluding depreciation and amortization was $12.9 million compared with $4.6 million a year ago.
For the nine months ended September 30, Seahawk incurred a loss of $25.1 million or $2.17 per share compared with profit of $154.6 million or $13.34 per share in 2008.
Loss from continuing operations was $28.2 million or $2.44 per share compared with profit of $135.1 million or $11.66 per share for the prior year.
Nine-month revenues fell to $259.8 million from $529.6 million in 2008.
Looking ahead Seahawk Chief Executive Randall Stilley said, "We are cautiously optimistic about the prospects for 2010, and it appears that many customers now want to take advantage of improved natural gas prices and reduced well costs."
Based on current expectations for activity in the fourth quarter of 2009, which includes four rigs working in the U.S. and two rigs working in Mexico, Seahawk anticipates that their cash and cash equivalents balance on December 31, 2009 will be in the range of $60 million to 70 million.
Thursday, HAWK is trading down 1.65% at $28.07 on Nasdaq.
For comments and feedback contact: editorial@rttnews.com
June 12, 2026 17:14 ET Major central bank action was the focus this week in economic news. The European Central Bank became the first major central bank to move in response to the rising inflationary pressures in the backdrop of the conflict in the Middle East. In North America, the U.S. inflation and trade data as well as Canada’s central bank decision gained attention. The Chinese trade data was the main news in Asia.