The WorkBoat Composite Index, along with the broader stock market, got off to a rocky start in 2014. The Index, which gained over 27 percent last year, lost about 2.6 percent in January as losers topped winners 19-8. But the Index did fare much better than the Dow in January, which lost over 5 percent, and the S&P 500, which lost about 3.5 percent.
However, the Philadelphia Oil Service Sector Index got hammered in January, losing 6 percent. WorkBoat Index components Tidewater, Transocean and Oceaneering International are also part of the Oil Service Index, which gained 27 percent in 2013.
Tidewater shares dipped over 12 percent in January. In early February, Tidewater reported that third-quarter revenue rose 18 percent to $365 million from $309 million for the same period last year, but missed the analysts’ revenue estimate of $374 million.
Jeffrey M. Platt, Tidewater’s chief executive officer, said in a February earnings call with analysts that it was another solid quarter for the company and was “consistent with our long-held and often repeated view that the offshore industry is in an early phase of an extended up cycle.”
Platt said some analysts were concerned about the health of the deepwater Gulf of Mexico market. “Some of our competitors have discussed their current market choppiness in the Gulf. But our vessels are largely unaffected, as they are chartered at solid day rates for an extended period of time. Recently, we took delivery of two of the largest deepwater PSVs in our fleet during the December quarter. And both vessels immediately commenced multi-year charters in the Gulf at day rates in excess of $40,000 a day.”
