Cal Dive International, Inc. (NYSE:DVR) reported a second quarter 2012 loss of $5.7 million, or $0.06 per diluted share. This compares to a loss of $5.0 million, or $0.05 per diluted share for second quarter 2011. The results for second quarter 2012 included an effective tax benefit rate of 38%, compared to a higher effective tax benefit rate of 66% for the second quarter 2011 which provided an increased tax benefit of $0.04 per diluted share for 2011. The operating results for the second quarter of 2012 reflect the negative impact from Tropical Storm Debby that moved through the Gulf of Mexico during the latter half of June and idled over half of the Company’s active fleet during this time. Notwithstanding this impact, operating loss improved $3.3 million compared to the second quarter of 2011, and EBITDA improved by $3.4 million for second quarter 2012 to $10.7 million compared to $7.3 million for second quarter 2011. While there were offsetting factors, the improvements were primarily due to a significant reduction in overhead costs from the Company’s cost reduction measures implemented in 2011.
Quinn Hébert, Chairman, President and Chief Executive Officer of Cal Dive, stated, “We were pleased that we experienced higher utilization during the second quarter 2012 compared to the same period of 2011 as the Gulf of Mexico demand for our services continues to slowly recover. Unfortunately, Tropical Storm Debby negatively impacted the financial benefit we would have realized from the increased activity in June. Specifically, lump sum price contracts were significantly impacted by the storm’s interruption. Looking forward into the third quarter, we expect strong utilization levels domestically and that most of our assets that are available to work will be busy. However, pricing remains very competitive and it is uncertain when we will start to see pricing increase. We remain focused on maintaining our market share in the Gulf of Mexico to allow for strong utilization coupled with continued excellent project execution.
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