WorkBoat stocks closed 2019 on an up note, gaining 38 points in December, or 1.76%. For the year, the WorkBoat Composite Index gained a whopping 21%, just shy of the 22% increase in the Dow.
The big news in December was the delisting of Hornbeck Offshore Services from the New York Stock Exchange (NYSE). Hornbeck was down 19% in December when trading in the stock was suspended after the market closed on Dec. 20. Its common stock commenced trading on the OTC Pink marketplace (OTC Pink) on Dec. 23.
Trading was suspended because Hornbeck Offshore did not maintain an average global market capitalization of at least $15 million over a consecutive 30-trading-day period, as required by NYSE continued listing standards.
Hornbeck Offshore said it intends to appeal the NYSE’s decision to commence proceedings to delist the company’s common stock and will request a review of its appeal.
In the company’s November conference call with analysts, Todd Hornbeck, the OSV operator’s chief executive officer, said that third quarter results were disappointing.
“Market conditions for our vessels remained soft, principally in the U.S. Gulf of Mexico. We had expected that in the third quarter, the positive sentiment that we had observed previously would have translated into improved utilization and day rates. While we are still seeing signs of improving demand … and believe that there are positive indicators for future improvement, we simply have not seen them turn into improved financial performance yet.”