Hornbeck Offshore -7.6% as profits, dayrates drop

Hornbeck Offshore (HOS -7.6%) opens sharply lower after Q1 earnings were nearly cut in half vs. the prior-year quarter and missed expectations.

Dayrates for HOS' new generation offshore supply vessels fell to $26,237 in Q1 from $27,958 in same period a year ago; utilization rates fell to 75.3% from 79.4% in the December quarter.

HOS says its forward contract coverage for its current and projected fleet of active new generation OSVs for the rest of FY 2014 and FY 2015 currently is 60% and 24%, respectively.

Cowen analysts say H1 weakness had been widely expected but was worse than anticipated; the firm thinks investors eventually will focus on improving Gulf of Mexico fundamentals but probably not before some short-term pain in the shares (Briefing.com).

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