SEACOR Marine Announces Results for Its Fourth Quarter and Year Ended December 31, 2017

HOUMA, La.–(BUSINESS WIRE)–SEACOR Marine Holdings Inc. (NYSE:SMHI) (the “Company”), a leading
provider of global marine and support transportation services to
offshore oil and natural gas exploration, development and production
facilities worldwide, today announced results for its fourth quarter and
year ended December 31, 2017.

Net income attributable to SEACOR Marine Holdings Inc. was $29.0 million
($1.20 per diluted share) for the fourth quarter ended December 31,
2017. Net loss attributable to SEACOR Marine Holdings Inc. was $32.9
million ($1.87 per diluted share) for the year ended December 31, 2017.

Results for the fourth quarter ended December 31, 2017 included the
following:

• Improved direct vessel profit (“DVP”) of $11.7 million compared with
  $9.4 million in the preceding quarter.
• Impairment charges of $11.8 million primarily associated with the
  Company’s anchor handling towing supply fleet.
• Income tax benefits of $50.7 million recognized as a result of new
  U.S. tax legislation, commonly referred to as the Tax Cuts and Jobs
  Act, signed into law on December 22, 2017.

John Gellert, the Company’s Chief Executive Officer, commented:

“Operating results continued to improve in the fourth quarter.

We continue to see strengthened demand for platform and well services
performed by our liftboat fleet both domestically and internationally,
which helped to drive our improved results. With the consolidation of
the SEACOR and Montco liftboat fleets in February, we enter the 2018
maintenance and construction season in the Gulf of Mexico with a larger,
more capable liftboat fleet that is well positioned to meet growing
demand.

The four PSVs we acquired in December are generating positive operating
results and have already benefited from a tightening market for active
vessels. We are closely evaluating opportunities for the newbuild
SEACOSCO joint venture PSVs and are confident of securing charters for
some of these vessels as the year progresses.

Our results reflect increasing seasonality in some of our asset classes,
especially liftboats in the Gulf of Mexico and wind farm utility vessels
in the North Sea. However, we remain optimistic that higher oil and
natural gas prices are helping build a foundation for an eventual
recovery in offshore activity worldwide. By leveraging our diverse
fleet, which has been buttressed by recent acquisitions, we believe we
are well positioned to service a wide variety of offshore activities as
they develop in the coming year.”

For the fourth quarter and year ended December 31, 2016, net loss
attributable to SEACOR Marine Holdings Inc. was $61.6 million ($3.48 per
diluted share) and $132.0 million ($7.47 per diluted share),
respectively. Net loss attributable to SEACOR Marine Holdings Inc. for
the preceding quarter ended September 30, 2017 was $20.5 million ($1.25
per diluted share).

A comparison of results for the fourth quarter ended December 31, 2017
with the preceding quarter ended September 30, 2017 is included below.

Operating Revenues. Time charter revenues were $0.5
million higher compared with the preceding quarter. On a total fleet
basis, time charter revenues increased by $0.8 million from improved
utilization, $0.7 million from net fleet additions and $0.3 million due
to favorable changes in currency exchange rates. Time charter revenues
decreased by $1.0 million due to a reduction in average rates per day
worked and $0.3 million due to the repositioning of vessels between
geographic regions. Other marine services revenues were $1.0 million
higher compared with the preceding quarter primarily due to the
collection in the fourth quarter of previously deferred revenues.

On a total fleet basis, excluding wind farm utility vessels but
including cold-stacked vessels, utilization of the fleet increased from
49% to 51%, and average rates per day worked increased from $8,565 to
$8,583. Days available for charter were 1% higher in the fourth quarter
primarily due to net fleet additions.

Direct Vessel Profit (“DVP”)(1)
by Region. DVPwas $11.7 million compared with $9.4
million in the preceding quarter, an increase of $2.3 million. In
addition to improved operating revenues of $1.5 million, operating
expenses (excluding leased-in equipment) were $0.8 million lower
compared with the preceding quarter. Results by region are as follows:

United States, primarily Gulf of Mexico. Direct vessel profit was
$1.3 million compared with direct vessel loss of $2.1 million in the
preceding quarter, a $3.4 million improvement of which $1.7 million was
associated with the liftboat fleet. Time charter revenues were $1.0
million higher compared with the preceding quarter. On a total fleet
basis, time charter revenues increased by $0.7 million from improved
utilization and $0.3 million from fleet additions. On a total fleet
basis, including cold-stacked vessels, utilization of the fleet
increased from 16% to 18%, and average rates per day worked improved by
11% from $7,212 to $8,027. Days available for charter were materially
unchanged. Operating expenses (excluding leased-in equipment) were $2.4
million lower compared with the preceding quarter. Personnel costs were
$0.6 million lower primarily due to the cold-stacking of additional
vessels. Repairs and maintenance and drydocking expenses were $1.9
million lower primarily due to costs associated with the reactivating of
previously cold-stacked vessels during the preceding quarter. As of
December 31, 2017, the Company had 34 of 42 owned and leased-in vessels
cold-stacked in the U.S. (ten anchor handling towing supply vessels, 13
fast support vessels, nine liftboats, one supply vessel and one
specialty vessel) compared with 31 of 42 vessels as of September 30,
2017. As of December 31, 2017, the Company had one supply vessel retired
and removed from service in this region.

Africa, primarily West Africa. DVP was $3.8 million compared with
$2.6 million in the preceding quarter, a $1.2 million improvement. Time
charter revenues were $0.2 million lower compared with the preceding
quarter. On a total fleet basis, time charter revenues decreased by $0.2
million due to reduced utilization, $0.1 million due to a reduction in
average day rates and $0.4 million due to the repositioning of vessels
between geographic regions. Time charter revenues were $0.5 million
higher due to fleet additions. On a total fleet basis, including
cold-stacked vessels, utilization of the fleet increased from 71% to
75%, and average rates per day worked decreased by 1% from $10,611 to
$10,517. Days available for charter decreased by 5% in the fourth
quarter primarily due to the retirement and removal from service of one
vessel. Other marine services revenues were $1.3 million higher compared
with the preceding quarter primarily due to the collection in the fourth
quarter of previously deferred revenues. As of December 31, 2017, the
Company did not have any of its 16 owned and leased-in vessels
cold-stacked in Africa compared with one of 14 vessels as of September
30, 2017. As of December 31, 2017, the Company had one fast support
vessel and one specialty vessel retired and removed from service in this
region.

Middle East and Asia. Direct vessel loss was $0.2 million
compared with $0.5 million in the preceding quarter, including an
improvement of $1.7 million on the liftboat fleet and a decline of $1.9
million on the fast support fleet. Time charter revenues were $1.2
million higher compared with the preceding quarter. Time charter
revenues were $2.1 million higher due to increased utilization, $0.1
million higher due to the repositioning of vessels between geographic
regions and $1.0 million lower due to a decrease in average rates per
day worked. On a total fleet basis, including cold-stacked vessels,
utilization of the fleet increased from 61% to 68%, and average rates
per day worked decreased by 5% from $7,138 to $6,784. Days available for
charter increased by 6% primarily due to the repositioning of vessels
between geographic regions. Operating expenses (excluding leased-in
equipment) were $1.1 million higher compared with the preceding quarter
primarily due to increased drydocking activity on the fast support fleet
and the repositioning of vessels between geographic regions. As of
December 31, 2017, the Company had two of 25 owned and leased-in vessels
cold-stacked in the Middle East and Asia (one anchor handling towing
supply vessel and one wind farm utility vessel) compared with one of 25
vessels as of September 30, 2017. As of December 31, 2017, the Company
had one specialty vessel retired and removed from service in this region.

Brazil, Mexico, Central and South America. DVP was $2.1 million
compared with $2.2 million in the preceding quarter. Time charter
revenues were $0.1 million higher compared with the preceding quarter.
On a total fleet basis, including cold-stacked vessels, utilization of
the fleet increased from 49% to 50%, average rates per day worked
increased from $16,060 to $16,718 and days available for charter were
unchanged. Operating expenses (excluding leased-in equipment) were $0.2
million higher compared with the preceding quarter. As of December 31,
2017 and September 30, 2017, the Company had one of four owned and
leased-in vessels cold-stacked in Brazil, Mexico, Central and South
America (one fast support vessel).

Europe, primarily North Sea. DVP was $4.7 million compared with
$7.2 million in the preceding quarter, a decrease of $2.5 million. Time
charter revenues were $1.7 million lower primarily due to a seasonal
reduction in utilization of the wind farm utility vessels. For the
standby safety fleet, utilization decreased from 84% to 82%, and average
rates per day worked increased from $8,650 to $8,660. For the wind farm
utility vessels, utilization decreased from 94% to 73%, and average
rates per day worked increased from $2,221 to $2,330. As of December 31,
2017, the Company had 19 owned standby safety vessels and 35 owned wind
farm utility vessels in Europe.

Administrative and general. Administrative and general
expenses were $2.0 million higher compared with the preceding quarter
primarily due to higher director compensation costs and higher legal and
professional fees.

Depreciation and amortization. Depreciation and
amortization costs were $4.4 million higher compared with the preceding
quarter, of which $2.8 million was associated with the fourth quarter
reduction in the depreciable lives of three offshore support vessels to
their next regulatory survey dates in 2018.

Asset Dispositions and Impairments. During the fourth
quarter, the Company recognized impairment charges of $11.8 million
associated with the Company’s anchor handling towing supply fleet. In
addition, the Company sold three offshore support vessels previously
retired and removed from service and one other offshore support vessel
for net proceeds of $0.7 million and losses of $0.5 million. During the
preceding quarter, the Company recognized impairment charges of $9.9
million associated with one fast support vessel removed from service and
two specialty vessels. In addition, the Company sold two offshore
support vessels previously retired and removed from service and other
equipment for net proceeds of $0.2 million and gains of $0.2 million.

Derivative gains (losses). Net derivative gains during the
fourth quarter and preceding quarter of $7.5 million and $13.0 million,
respectively, were primarily due to reductions in the fair value of the
Company’s conversion option liability on its 3.75% Convertible Senior
Notes. The reductions in the conversion option liability were primarily
the result of declines in the Company’s share price and estimated credit
spread.

Income tax benefit. The Company’s effective income tax
rate of 156% in the fourth quarter was higher than the Company’s
statutory rate of 35% primarily due to income tax benefits of $43.7
million recognized as a result of new U.S. tax legislation signed into
law on December 22, 2017. The majority of the income tax benefits
recognized were due to a reduction in U.S. tax rates from 35% to 21%
applied to the Company’s domestic basis differences and the elimination
of previously accrued deferred taxes on the unremitted earnings of the
Company’s foreign subsidiaries.

Equity in earnings (losses) of 50% or less owned companies.
Equity earnings of $9.4 million in the fourth quarter included income
tax benefits of $7.1 million recognized as a result of new U.S. tax
legislation. The majority of the income tax benefits recognized were due
to a reduction in U.S. tax rates from 35% to 21% applied to the
Company’s basis differences in its domestic joint ventures and the
elimination of previously accrued deferred taxes on the unremitted
earnings of the Company’s foreign joint ventures. Equity losses of $7.3
million in the preceding quarter included an impairment charge of $8.3
million, net of tax, related to the Company’s investment in Dynamic
Offshore Drilling Ltd.

Capital Commitments. As of December 31, 2017, the Company
had capital commitments of $66.7 million that included four fast support
vessels, three supply vessels and two wind farm utility vessels. The
delivery dates and payment of certain costs (originally scheduled for
payment in 2018, 2019 and 2020) for two of the fast support vessels are
uncertain as the Company, at its option, may defer their construction
for an indefinite period of time. The Company’s capital commitments by
year of expected payment are as follows (in thousands):

Subsequent to December 31, 2017, the Company committed an additional
$11.0 million ($10.1 million to be paid in 2018 and $0.9 million to be
paid in 2019) to acquire two additional wind farm utility vessels and
convert two of its existing supply vessels to a standby safety
configuration.

On January 17, 2018, the Company announced the formation of SEACOSCO
Offshore LLC (“SEACOSCO”), a Marshall Islands entity jointly owned by
the Company and affiliates of COSCO SHIPPING GROUP, the world’s largest
ship owner. SEACOSCO entered into contracts for the purchase of eight
Rolls-Royce designed, new construction platform supply vessels. The
Company’s total committed investment for construction and working
capital requirements is approximately $27.5 million, with approximately
$20.0 million payable in the first quarter of 2018 and the remaining
balance due over the next 14 months.

Liquidity and Debt. As of December 31, 2017, the Company’s
balances of cash, cash equivalents, restricted cash, and construction
reserve funds totaled $157.9 million and its total outstanding debt was
$314.9 million (net of $33.2 million in discount and issue costs).

On February 9, 2018, the Company announced the formation and
capitalization of a joint venture between a wholly owned subsidiary of
the Company and Montco Offshore, LLC (“MOI”). The transaction
consolidates the fifteen liftboat vessels operated by the Company and
six liftboat vessels previously operated by MOI. The consolidated joint
venture paid $15.0 million of MOI’s debtor-in-possession obligations and
entered into a $131.1 million credit agreement on a non-recourse basis
with SEACOR Marine, comprised of a $116.1 million term loan and a $15.0
million revolving loan facility.

SEACOR Marine provides global marine and support transportation services
to offshore oil and natural gas exploration, development and production
facilities worldwide. SEACOR Marine and its joint ventures operate a
diverse fleet of offshore support and specialty vessels that deliver
cargo and personnel to offshore installations; handle anchors and
mooring equipment required to tether rigs to the seabed; tow rigs and
assist in placing them on location and moving them between regions;
provide construction, well workover and decommissioning support; and
carry and launch equipment used underwater in drilling and well
installation, maintenance and repair. Additionally, SEACOR Marine’s
vessels provide accommodations for technicians and specialists, safety
support and emergency response services.

Certain statements discussed in this release as well as in other
reports, materials and oral statements that the Company releases from
time to time to the public constitute “forward-looking statements”
within the meaning of the Private Securities Litigation Reform Act of
1995. Generally, words such as “anticipate,” “estimate,” “expect,”
“project,” “intend,” “believe,” “plan,” “target,” “forecast” and similar
expressions are intended to identify forward-looking statements. Such
forward-looking statements concern management’s expectations, strategic
objectives, business prospects, anticipated economic performance and
financial condition and other similar matters. These statements
are not guarantees of future performance and actual events or results
may differ significantly from these statements. Actual events or
results are subject to significant known and unknown risks,
uncertainties and other important factors, including decreased demand
and loss of revenues as a result of a decline in the price of oil and
resulting decrease in capital spending by oil and gas companies, an
oversupply of newly built offshore support vessels, additional safety
and certification requirements for drilling activities in the U.S. Gulf
of Mexico and delayed approval of applications for such activities, the
possibility of U.S. government implemented moratoriums directing
operators to cease certain drilling activities in the U.S. Gulf of
Mexico and any extension of such moratoriums, weakening demand for the
Company’s services as a result of unplanned customer suspensions,
cancellations, rate reductions or non-renewals of vessel charters or
failures to finalize commitments to charter vessels in response to a
decline in the price of oil, increased government legislation and
regulation of the Company’s businesses could increase cost of
operations, increased competition if the Jones Act and related
regulations are repealed, liability, legal fees and costs in connection
with the provision of emergency response services, such as the response
to the oil spill as a result of the sinking of the Deepwater Horizon in
April 2010, decreased demand for the Company’s services as a result of
declines in the global economy, declines in valuations in the global
financial markets and a lack of liquidity in the credit sectors,
including, interest rate fluctuations, availability of credit, inflation
rates, change in laws, trade barriers, commodity prices and currency
exchange fluctuations, the cyclical nature of the oil and gas industry,
activity in foreign countries and changes in foreign political, military
and economic conditions, changes to the status of applicable trade
treaties including as a result of the U.K.’s impending exit from the
European Union, changes in foreign and domestic oil and gas exploration
and production activity, safety record requirements, compliance with
U.S. and foreign government laws and regulations, including
environmental laws and regulations and economic sanctions, the
dependence on several key customers, consolidation of the Company’s
customer base, the ongoing need to replace aging vessels, industry fleet
capacity, restrictions imposed by the Jones Act and related regulations
on the amount of foreign ownership of the Company’s Common Stock,
operational risks, effects of adverse weather conditions and
seasonality, adequacy of insurance coverage, the ability of the Company
to achieve and maintain effective internal controls over financial
reporting in accordance with Section 404 of the Sarbanes-Oxley Act, the
attraction and retention of qualified personnel by the Company, and
various other matters and factors, many of which are beyond the
Company’s control as well as those discussed in Item 1A (Risk Factors)
of the Company’s Annual Report on Form 10-K and other reports filed by
the Company with the SEC. It should be understood that it is not
possible to predict or identify all such factors. Consequently,
the preceding should not be considered to be a complete discussion of
all potential risks or uncertainties and investors and analysts should
not place undue reliance on forward-looking statements. Forward-looking
statements speak only as of the date of the document in which they are
made. The Company disclaims any obligation or undertaking to provide any
updates or revisions to any forward-looking statement to reflect any
change in the Company’s expectations or any change in events, conditions
or circumstances on which the forward-looking statement is based, except
as required by law. It is advisable, however, to consult any
further disclosures the Company makes on related subjects in its filings
with the Securities and Exchange Commission, including Annual
Reports on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports
on Form 8-K (if any). These statements constitute the Company’s
cautionary statements under the Private Securities Litigation Reform Act
of 1995.

Please visit SEACOR Marine’s website at www.seacormarine.com
for additional information.
For all other requests, contact Erica
Bartsch at (212) 446-1875 or [email protected].

Contacts

SEACOR Marine Holdings Inc.
Erica Bartsch, 212-446-1875
[email protected].

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