0001690334-26-000008
SEC filingRevenue declined 20% YoY to $44.3M, and operating losses widened to -$6.4M, reflecting lower fleet utilization and vessel dispositions, though management's cost restructuring efforts continue.
Operating loss was -$6.4 million for the first quarter of 2026, compared to -$5.3 million in the prior year quarter, representing a 21.4% increase in the loss. The operating margin was -14.4%. The widening loss reflects the revenue decline outpacing cost reduction efforts. Management continues to focus on optimizing the cost structure and regional footprint to maintain competitiveness and improve operating leverage.
Net cash used in operating activities was -$15.1 million in the first quarter of 2026, compared to -$11.5 million in the prior year quarter. Capital expenditures were $6.1 million, down from $20.8 million in Q1 2025, resulting in free cash flow of -$21.2 million. The Company may use its liquidity to fund capital expenditures, make acquisitions, or other investments. For a discussion of future cash requirements, refer to the Company's 2025 Annual Report.
The Company adheres to a strategy of cold-stacking vessels during periods of weak utilization to reduce daily running costs and defer drydocking costs. Cold-stacked vessels are returned to active service when market conditions improve, typically leading to increased costs in periods preceding their return. The Company closely monitors vessel availability in the offshore support vessel market, as utilization and day rates depend on supply and demand dynamics.
Low oil and natural gas prices and a corresponding decline in offshore exploration may reduce demand for the Company's vessels. Alternatively, increasing activity levels and a stable supply of offshore support vessels could support higher utilization and day rates. Some alternative forms of energy, such as offshore wind farms, support some of the Company's operations, and the Company expects such support to increase as renewable energy development expands. Management continues to focus on optimizing the cost structure and regional footprint to position the Company to take advantage of market opportunities.