Cal Dive International, Inc. (NYSE:DVR) reported a first quarter 2012 loss of $24.3 million, or $.26 per diluted share. This compares to a net loss of $18.7 million, or $.20 per diluted share for first quarter 2011. Included in the first quarter 2012 results is a $1.4 million ($.01 per diluted share) impairment charge relating to a non-core asset. Aside from the impairment charge, the increase in the loss is primarily due to the regulatory drydocks of three of the Company’s most profitable assets during the first quarter 2012, including longer than expected out of service time for the upgrade of the Uncle John to enable the vessel to perform light well intervention work. The upgrade was not completed until early April. With the upgrade completed, the vessel is now working and is contracted for nearly all of the remainder of 2012. In addition, the Company experienced higher activity in the first quarter 2011 from a large construction project in the Bahamas that did not re-occur in the first quarter 2012. Partially offsetting the activity decreases were lower costs.
Quinn Hébert, Chairman, President and Chief Executive Officer of Cal Dive, stated, “Our first quarter results reflect the regulatory dry docking of three of our most profitable assets combined with the typical winter seasonality in the US Gulf of Mexico. The financial impact from the combined out of service time for the three assets in drydock was greater than expected as the upgrade of the Uncle John, our most profitable asset, took longer than expected, which prevented it from working during the entire first quarter. The good news is that the vessel is now working and it is booked for most of the rest of the year. In addition, our first quarter financial results were negatively impacted by the delay to the second quarter of the majority of a large salvage project.
“Now that the drydocks and winter weather are behind us, we look forward to increased activity levels in the second quarter, especially in the Gulf of Mexico. However, pricing is expected to remain relatively flat as the activity levels are still recovering. In Mexico, we commenced a construction project in early April. We look for meaningful improvement in our financial results for the second quarter of 2012.”